ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM
TO

Commission File Number

Registrant; State of Incorporation; Address andTelephone Number

I.R.S. Employer Identification No.

001-32871

COMCAST CORPORATION

PENNSYLVANIA

One Comcast Center

Philadelphia, PA 19103-2838

(215) 286-1700

27-0000798

001-36438

NBCUniversal Media, LLC

DELAWARE

30 Rockefeller Plaza

New York, NY 10112-0015

(212) 664-4444

14-1682529

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Comcast Corporation 

Title of Each Class

Name of Each Exchange on Which Registered

Class A Common Stock, $0.01 par value

2.0% Exchangeable Subordinated Debentures due 2029

5.00% Notes due 2061

5.50% Notes due 2029

9.455% Guaranteed
Notes due 2022

NASDAQ Global Select Market

New York Stock Exchange

New York Stock Exchange

New York Stock Exchange

New York Stock
Exchange

NBCUniversal Media, LLC  NONE

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

Comcast Corporation  NONE

NBCUniversal Media, LLC  NONE

Indicate by check mark if
the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Comcast Corporation

Yes ☒

No ☐

NBCUniversal Media, LLC

Yes ☒

No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or
Section 15(d) of the Act.

Comcast Corporation

Yes ☐

No ☒

NBCUniversal Media, LLC

Yes ☐

No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Comcast Corporation

Yes ☒

No ☐

NBCUniversal Media, LLC

Yes ☒

No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if
any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Comcast Corporation

Yes ☒

No ☐

NBCUniversal Media, LLC

Yes ☒

No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendments to this Form 10-K.

Comcast Corporation

☐

NBCUniversal Media, LLC

N/A

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act:

Comcast Corporation

Large accelerated filer ☒

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☐

NBCUniversal Media, LLC

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☒

Smaller reporting company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Comcast Corporation

Yes ☐

No ☒

NBCUniversal Media, LLC

Yes ☐

No ☒

As of June 30, 2016, the aggregate market value of the Comcast Corporation common stock held by non-affiliates
of the registrant was $155.940 billion.

Indicate the number of shares outstanding of each of the registrants classes of stock, as
of the latest practicable date:

As of December 31, 2016, there were 2,366,357,318 shares of Comcast Corporation Class A common
stock and 9,444,375 shares of Class B common stock outstanding.

Not applicable for NBCUniversal Media, LLC.

NBCUniversal Media, LLC meets the conditions set forth in General Instruction I(1)(a), (b) and (d) of Form 10-K and is therefore filing
this form with the reduced disclosure format.

DOCUMENTS INCORPORATED
BY REFERENCE

Comcast Corporation  Part III  The registrants definitive Proxy Statement for its annual meeting of
shareholders presently scheduled to be held in June 2017.

This Annual Report on Form 10-K is a combined report being filed separately by Comcast Corporation (Comcast) and NBCUniversal Media, LLC
(NBCUniversal). Comcast owns all of the common equity interests in NBCUniversal, and NBCUniversal meets the conditions set forth in General Instruction I(1)(a), (b) and (d) of Form 10-K
and is therefore filing its information within this Form 10-K with the reduced disclosure format. Each of Comcast and NBCUniversal is filing on its own behalf the information contained in this report that
relates to itself, and neither company makes any representation as to information relating to the other company. Where information or an explanation is provided that is substantially the same for each company, such information or explanation has
been combined in this report. Where information or an explanation is not substantially the same for each company, separate information and explanation has been provided. In addition, separate consolidated financial statements for each company, along
with notes to the consolidated financial statements, are included in this report. Unless indicated otherwise, throughout this Annual Report on Form 10-K, we refer to Comcast and its consolidated subsidiaries,
including NBCUniversal and its consolidated subsidiaries, as we, us and our; Comcast Cable Communications, LLC and its subsidiaries as

This Annual Report on Form 10-K is for the year ended December 31, 2016. This Annual Report on Form 10-K modifies and supersedes documents filed before it.

The Securities and Exchange
Commission (SEC) allows us to incorporate by reference information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by
reference is considered to be part of this Annual Report on Form 10-K. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in
this Annual Report on Form 10-K.

Our registered trademarks include Comcast, NBCUniversal and
the Comcast and NBCUniversal logos. This Annual Report on Form 10-K also contains other trademarks, service marks and trade names owned by us, as well as those owned by others.

We are a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. We were incorporated under the laws of Pennsylvania in December 2001. Through our predecessors, we have
developed, managed and operated cable systems since 1963. In 2011, we acquired control of NBCUniversal from General Electric Company (the NBCUniversal transaction), and in 2013, we acquired General Electric Companys remaining
interest in NBCUniversal.

We present our operations for Comcast Cable in one reportable business segment, referred to as Cable
Communications, and our operations for NBCUniversal in four reportable business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the NBCUniversal segments).



Cable Communications: Consists of the operations of Comcast Cable, which is one of the nations largest providers of video, high-speed Internet
and voice services (cable services) to residential customers under the XFINITY brand; we also provide these and other services to business customers and sell advertising.

Broadcast Television: Consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local broadcast television stations,
and our broadcast television studio production operations.



Filmed Entertainment: Consists primarily of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed
entertainment worldwide, as well as DreamWorks Animation, which we acquired in August 2016; our films are also produced under the Illumination and Focus Features names.

Our other business interests consist primarily of Comcast Spectacor, which owns the
Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses. We are also pursuing other business initiatives, such as a wireless phone service that we expect to launch in 2017
using our virtual network operator rights to provide the service over a third partys wireless network.

For financial and other
information about our reportable business segments, refer to Item 7: Managements Discussion and Analysis of Financial Condition and Results of Operations, Note 17 to Comcasts consolidated financial statements, and Note 16 to
NBCUniversals consolidated financial statements included in this Annual Report on Form 10-K.

Available
Information and Websites

Comcasts phone number is (215) 286-1700, and its principal
executive offices are located at One Comcast Center, Philadelphia, PA 19103-2838. NBCUniversals phone number is (212) 664-4444, and its principal executive offices are located at 30 Rockefeller
Plaza, New York, NY 10112-0015. Comcast and NBCUniversals

Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and any amendments to such reports filed with or furnished to the SEC under Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), are available free of
charge on the SECs website at www.sec.gov and on Comcasts website at www.comcastcorporation.com as soon as reasonably practicable after such reports are electronically filed with the SEC. The information posted on our websites is not
incorporated into our SEC filings. The public may read and copy any materials filed with the SEC at the SECs Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330.

Basis of Presentation: Customer metrics include our residential and business customers. All percentages are
calculated based on actual amounts. Minor differences may exist due to rounding.

(a)

Homes and businesses are considered passed if we can connect them to our distribution system without further extending the transmission lines. Homes and
businesses passed is estimated based on the best available information.

(b)

Customer relationships represent the number of residential and business customers that subscribe to at least one of our cable services. Single product, double
product and triple product customers represent customers that subscribe to one, two or three of our cable services, respectively. As of December 31, 2016, we had 26.5 million residential customer relationships.

(c)

Generally, a home or business receiving video programming from our distribution system counts as one video customer. For multiple dwelling units
(MDUs) whose residents have the ability to receive additional cable services, such as additional programming choices or our high-definition video (HD) or digital video recorder (DVR) advanced services, we count
and report customers based on the number of potential billable relationships within each MDU. For MDUs whose residents are not able to receive additional cable services, the MDU is counted as a single customer.

(d)

Penetration is calculated by dividing the number of customers by the number of homes and businesses passed.

We offer our video, high-speed Internet and voice services individually and as bundled services over our cable distribution system to residential and business customers. Our bundled service offerings aim to meet
the needs of the various segments of our customer base, ranging from high-speed Internet services packaged with video or streaming services that include a limited number of channels, to a triple product bundle, consisting of our video, high-speed
Internet and voice services. We also offer our home security and automation services as a component of our bundled service offerings. Subscription rates and related charges vary according to the services and features customers receive and the type
of equipment they use, and customers are typically billed in advance on a monthly basis. The majority of our residential cable services customers are not subject to minimum-term contracts for their services, while substantially all of our business
customers are. Minimum-term contracts are typically 2 years in length for residential customers and typically range from 2 to 5 years for business services customers. Customers with minimum-term contracts may only discontinue service in accordance
with the terms of their contracts, which typically include an early termination fee.

The Areas We Serve

The map below highlights our footprint as of December 31, 2016 and the designated market areas (DMAs) in which we offer cable
services that have 250,000 or more customer relationships. The locations that are bolded represent the DMAs in which we operate that were also included in the top 25 U.S. television DMAs as of December 31, 2016.

Video Services

We offer a broad variety of video services under the XFINITY brand that provide access to hundreds of channels depending on the customers level of service. Our levels of service typically range from a limited
basic service with access to between 20 and 40 channels to a full service with access to more than 300 channels. Our video services generally include programming provided by national broadcast networks, local broadcast stations, and national and
regional cable networks, as well as government and public access programming. We also offer packages that include extensive amounts of foreign-language programming and other specialty tiers of programming with sports, family and international
themes. We tailor our video services for a particular geographic area according to applicable local and federal regulatory requirements, programming preferences and demographics.

Our video customers may also subscribe to premium networks. Premium networks include networks such as
HBO, Showtime, Starz and Cinemax that generally provide, without commercial interruption, movies, original programming, live and taped sporting events and concerts, and other features.

Our video services generally include access to our video on demand service (On Demand) and an interactive, on-screen program guide. Our On Demand service provides video customers with over 100,000 programming choices over the course of a month, including approximately 40,000 in high definition. A substantial portion of
our On Demand content is available at no additional charge; other content, primarily movies and special-events programming, such as sporting events and concerts, can be rented or in some cases purchased to own digitally. We continue to increase the
number of On Demand choices we offer.

Our HD service provides customers with high-resolution picture quality, improved audio quality
and a wide-screen format through an HD set-top box. Our HD service includes a broad selection of HD programming choices, including major broadcast networks, national cable networks, premium networks and
regional sports networks. Our DVR service allows video customers to record and store programs and play them at whatever time is convenient. Our DVR service also provides the ability to pause and rewind live television. We refer to our HD and DVR
services as advanced services.

Through our mobile apps and online portal, we offer streaming services that allow our video customers to
view certain live programming and On Demand content, browse program listings, and schedule and manage DVR recordings. Depending on the customers level of service, these services may require an additional monthly fee.

High-Speed Internet Services

We
offer high-speed Internet services with downstream speeds from a range of up to 10 Mbps to fiber-based speeds up to 2 Gbps. These services include access to our online portal and mobile apps, which provide email, an address book, calendars and
online security features. We are actively deploying wireless gateways throughout our footprint, which combine a customers wireless router, cable modem and voice adapter, to improve the performance of multiple
IP-enabled devices used at the same time within the home, provide faster Internet speeds and create an in-homeWi-Fi network. We
are continuing to expand our network of residential, outdoor and business Wi-Fi hotspots to allow most of our high-speed Internet customers to access our high-speed Internet services inside and outside the
home. As of December 31, 2016, there were approximately 15.8 million of these hotspots.

Voice Services

We offer voice services using an interconnected Voice over Internet Protocol (VoIP) technology. Our voice services provide either
unlimited or usage-based local and domestic long-distance calling and include options for international calling plans, voicemail, voicemail transcriptions, text messaging, caller ID and call waiting. For customers with our high-speed Internet
services, our voice services also include the ability to access and manage voicemail, text messaging and other account features through our online portal or mobile apps.

We offer our cable services to small and medium-sized businesses and to large enterprises with multiple locations. Our large enterprise business services are designed for
Fortune 1000 companies and other large enterprises with multiple locations both within and outside of our cable distribution footprint. We service these multiple locations through agreements with other cable companies to use their networks to
provide coverage outside of our service areas. In addition to the features available to our residential cable services customers, our services for business customers include an interactive tool that allows customers to store, share, and collaborate
on files online, hosted voice services that use cloud network servers, a business directory listing, and additional capacity for multiple phone lines.

We offer Ethernet network services that connect multiple locations and provide higher downstream and upstream speed options to medium-sized businesses and large enterprises.
We also provide cellular backhaul services to mobile network operators to help those customers manage network bandwidth.

Advertising

As part of our distribution agreements with cable networks, we generally receive an allocation of scheduled advertising time on cable networks that
we sell through our advertising business, Spotlight, to local, regional and national advertisers. In most cases, the available advertising units are sold by our sales force. In some cases, we work with representation firms as an extension of our
sales force to sell a portion of the advertising units allocated to us. We also represent the advertising sales efforts of other multichannel video providers in some markets. In addition, we generate revenue from the sale of advertising online and
on our On Demand service.

Other

We also offer home security and automation services that provide home monitoring services and the ability to manage other functions within the home,
such as lighting and room temperature, through our online portal or our mobile apps.

Technology

Our cable distribution system uses a hybrid fiber-optic and coaxial cable network that we believe is sufficiently flexible and scalable to support
our future technology requirements. This network provides the two-way transmissions that are essential to providing high-speed Internet services, interactive video services, such as On Demand, and voice
services.

We continue to focus on technology initiatives, including:



developing and deploying next-generation media and content delivery platforms, such as our X1 platform and related cloud DVR technology, that use IP
technology and our own cloud network servers to deliver video and advanced search capabilities, including through a voice-activated remote control, and allow access to certain third-party Internet applications



deploying wireless gateways to improve the performance of multiple IP-enabled devices used at the same time within the
home, provide faster Internet speeds and create an in-homeWi-Fi network



expanding our network of residential, outdoor and business Wi-Fi hotspots



developing multiple tools to recapture bandwidth and optimize our network to allow for faster Internet speeds and capacity, including using advanced video
encoding and digital compression technologies and DOCSIS innovations, such as DOCSIS 3.1

developing and deploying various technology and software tools to improve the customer experience

Sources of Supply

To offer our video services, we license a substantial portion of our programming from cable networks and broadcast networks, as well as from local broadcast television stations. We attempt to secure long-term
programming distribution agreements with these programming providers. We seek to include in our distribution agreements the rights to offer such programming through multiple delivery platforms that may be used in a variety of locations, such as
through On Demand, our online portal, our mobile apps, and our streaming services.

For our high-speed Internet services, we license
software products, such as email and security software, and content, such as news feeds for our online portal, from a variety of suppliers. Under our contracts with these suppliers, we generally pay on a
fixed-fee basis, on a per subscriber basis in the case of software product licenses or on a video advertising revenue share basis in the case of content licenses.

For our voice services, we license software products such as voicemail and text messaging from a variety of suppliers under multiyear contracts.
The fees we pay are generally based on the consumption of the related services.

We purchase from a limited number of suppliers a
significant number of set-top boxes and certain other customer premise equipment, network equipment and services to provide our cable services and our home security and automation services to residential and
business customers.

We use two primary vendors to provide customer billing for our cable services to our residential and business
customers.

We offer our services directly to residential and business customers through customer service call centers, customer service centers, our website,
door-to-door selling, telemarketing and retail outlets, as well as through advertising via direct mail, television and the Internet.

NBCUniversal Segments

Cable Networks

Our Cable Networks segment
consists of a diversified portfolio of national cable networks that provide a variety of entertainment, news and information, and sports content, our regional sports and news networks, our international cable networks, and our cable television
studio production operations. We also own related digital media properties, which primarily include brand-aligned websites.

The table below presents a summary of our national cable networks and their advertising reach to U.S.
households.

Approximate U.S.

Households as of

December 31

(in millions)(a)

Cable Network

2016

2015

2014

Description of Programming

USA Network

92

94

96

General entertainment

MSNBC

91

92

95

News and information

E!

90

92

94

Entertainment and pop culture

Syfy

90

92

95

Imagination-based entertainment

CNBC

89

91

94

Business and financial news

Bravo

88

90

92

Entertainment, culture and arts

NBC Sports Network

83

83

81

Sports

Golf Channel

78

77

79

Golf competition and golf entertainment

Oxygen

76

77

78

Womens interests

Sprout

59

56

58

Childrens entertainment

Esquire
Network(b)

58

68

70

Mens lifestyle and entertainment

Chiller

37

38

39

Horror and suspense

CNBC World

36

36

38

Global financial news

Universal HD

30

29

31

General entertainment HD programming

Cloo(b)

24

25

26

Crime, mystery and suspense

(a)

Household data is based on The Nielsen Companys January reports, except for Universal HD, which is derived from information provided by multichannel
video providers. Household data for 2016 is derived from information available during the period from November 28, 2016 through December 25, 2016.

(b)

In January 2017, we announced plans to convert the Esquire Network to an online-only format in 2017 and we ceased operations of the Cloo network.

Our regional sports and news networks together serve more than 27 million households across the United States,
including key markets such as Baltimore/Washington, Boston, Chicago, Philadelphia, Portland, Sacramento and San Francisco.

We market
and distribute our cable network programming in the United States and internationally to traditional and virtual multichannel video providers, as well as to subscription video on demand services, such as those offered by Amazon, Hulu and Netflix.
These distributors may provide our content on television, including via video on demand services, online and through mobile apps.

Our
cable networks produce their own programs or acquire the rights to programming from third parties, including sports programming rights that are discussed below under the heading Broadcast Television. Our cable television studio
production operations identify, develop and produce original content for our cable networks and third parties. We license this content to cable networks, broadcast networks and subscription video on demand services and it is sold on
standard-definition DVDs and Blu-ray discs (together, DVDs) and through digital distribution services such as iTunes.

Broadcast Television

Our Broadcast Television segment operates the NBC and Telemundo broadcast
networks, which together serve viewers and advertisers in all 50 states. Our Broadcast Television segment also includes our owned NBC and Telemundo local broadcast television stations, the NBC Universo national cable network, our broadcast
television studio production operations, and related digital media properties.

The NBC network distributes entertainment, news and sports programming that reaches viewers in virtually all U.S. television households through more than 200 affiliated stations across the United States, including
our 10 owned NBC-affiliated local broadcast television stations. The NBC networks programming library consists of rights of varying nature to more than 100,000 episodes of popular television content,
including current and classic titles, unscripted programming, sports, news, long-form and short-form programming, and locally produced programming from around the world. In addition, the NBC network owns related digital media properties, which
primarily include brand-aligned websites.

The NBC network produces its own programs or acquires the rights to programming from third
parties. NBCUniversal has various contractual commitments for the licensing of rights to multiyear programming, primarily sports programming. Our most significant sports programming commitments include the U.S. broadcast rights for the summer and
winter Olympic Games through 2032 and agreements with the NFL to produce and broadcast a specified number of regular season and playoff games, including Thursday Night Football through the 2017-18
season, Sunday Night Football through the 2022-23 season and the 2018 and 2021 Super Bowl games. We also have U.S. broadcast rights to a specified number of NHL games through the 2020-21 season, English Premier League soccer through the 2021-22 season, certain NASCAR events through 2024 and certain PGA TOUR and other golf events through 2030.
NBCUniversals sports programming agreements also include the rights to distribute content on our national cable networks, including the NBC Sports Network and Golf Channel, on our regional sports networks, and online, including through our
mobile apps.

Our broadcast television studio production operations develop and produce original content, including scripted and
unscripted programming series and talk shows. This original content is licensed to broadcast networks, cable networks and local broadcast television stations owned by us and third parties, as well as to subscription video on demand services, and it
is sold on DVDs and through digital distribution services both in the United States and internationally. We also produce first-run syndicated shows for local markets that are broadcast on local broadcast
television stations in the United States on a market-by-market basis. We currently distribute some of our television programs after their initial broadcast, as well as
older television programs from our library, to local broadcast television stations and cable networks in the off-network syndication market.

As of December 31, 2016, we owned and operated 10 NBC-affiliated local broadcast television stations
that collectively reached approximately 31 million U.S. television households, which represent approximately 27% of U.S. television households. In addition to broadcasting the NBC networks national programming, our local broadcast
television stations produce news, sports, public affairs and other programming that addresses local needs and acquire syndicated programming from other sources. The table below presents a summary of the
NBC-affiliated local broadcast television stations that we owned and operated as of December 31, 2016.

DMA Served(a)(b)

Station

General Market
Rank(c)

Percentage of U.S.

Television Households(d)

New York, NY

WNBC

1

6

%

Los Angeles, CA

KNBC

2

5

%

Chicago, IL

WMAQ

3

3

%

Philadelphia, PA

WCAU

4

3

%

Dallas-Fort Worth, TX

KXAS

5

2

%

San Francisco-Oakland-San Jose, CA

KNTV

6

2

%

Washington, D.C.

WRC

7

2

%

Miami-Ft. Lauderdale, FL

WTVJ

16

1

%

San Diego, CA

KNSD

28

1

%

Hartford, CT

WVIT

30

1

%

(a)

DMA served is defined by Nielsen Media Research as a geographic market for the sale of national spot and local advertising time.

(b)

On January 1, 2017, we launched a new owned and operated NBC-affiliated local broadcast television station in the
Boston market that reaches approximately 2 million U.S. television households. Bostons general market rank is No. 9, which represents approximately 2% of U.S. television households.

(c)

General market rank is based on the relative size of the DMA among the 210 generally recognized DMAs in the United States based on Nielsen estimates for the 2016-17 season.

(d)

Based on Nielsen estimates for the 2016-17 season. The percentage of U.S. television households does not reflect the
calculation of national audience reach under the Federal Communications Commissions (FCC) national television ownership cap limits. See Legislation and Regulation  Broadcast Television  Ownership Limits 
National Television Ownership.

Telemundo

Telemundo is a leading Hispanic media company that produces, acquires and distributes Spanish-language content in the United States and
internationally. Telemundos operations include the Telemundo network, its 17 owned local broadcast television stations and the NBC Universo national cable network.

The Telemundo network is a leading Spanish-language broadcast network featuring original telenovelas, movies, news, specials and sporting events. Telemundo develops original programming primarily through its
production studio and also acquires the rights to programming from third parties. It holds the Spanish-language U.S. broadcast rights to FIFA World Cup soccer through 2026 and the Spanish-language U.S. broadcast rights for certain NFL games that the
NBC network will broadcast through the 2022-23 season.

As of December 31, 2016, Telemundo owned 17 local broadcast television stations, including 16 local broadcast television stations affiliated with
the Telemundo network, which collectively reached approximately 59% of U.S. Hispanic television households as of December 31, 2016, and an independent television station in Puerto Rico. The table below presents a summary of these local
broadcast television stations.

DMA Served(a)

Station

Hispanic Market Rank(b)

Percentage of U.S.

Hispanic Television

Households(c)

Los Angeles, CA

KVEA

1

13

%

New York, NY

WNJU

2

10

%

Miami, FL

WSCV

3

5

%

Houston, TX

KTMD

4

5

%

Dallas-Fort Worth, TX

KXTX

5

4

%

Chicago, IL

WSNS

6

4

%

San Antonio, TX

KVDA

7

3

%

San Francisco-Oakland-San Jose, CA

KSTS

8

3

%

Phoenix, AZ

KTAZ

9

3

%

Harlingen-Brownsville-McAllen, TX

KTLM

10

2

%

Fresno, CA

KNSO(d)

14

2

%

Philadelphia, PA

WWSI

16

2

%

Denver, CO

KDEN

17

2

%

Boston, MA

WNEU

21

1

%

Las Vegas, NV

KBLR

24

1

%

Tucson, AZ

KHRR

26

1

%

Puerto Rico

WKAQ

N/A

N/A

(a)

DMA served is defined by Nielsen Media Research as a geographic market for the sale of national spot and local advertising time.

(b)

Hispanic market rank is based on the relative size of the DMA among approximately 15.1 million U.S. Hispanic households based on Nielsen estimates for
the 2016-17 season.

(c)

Based on Nielsen estimates for the 2016-17 season. The percentage of U.S. Hispanic television households does not
reflect the calculation of national audience reach under the FCCs national television ownership cap limits. See Legislation and Regulation  Broadcast Television  Ownership Limits  National Television Ownership.

(d)

Operated by a third party that provides certain non-network programming and operations services under a time brokerage
agreement.

We produce films both on our own and jointly with other studios or production companies, as well as with other entities. Our films are produced
primarily under the Universal Pictures, Illumination and Focus Features names, and in August 2016, we acquired DreamWorks Animation. Our films are marketed and distributed worldwide primarily through our own marketing and distribution operations. We
also acquire distribution rights to films produced by others, which may be limited to particular geographic regions, specific forms of media or certain periods of time. Our content includes theatrical films, direct-to-video movies and our film library, which is comprised of more than 5,000 movies in a variety of genres.

We have entered into, and may continue to enter into, film cofinancing arrangements with third parties, including both studio and nonstudio entities, to jointly finance or distribute certain of our film
productions. These arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor. Investors generally assume the full risks and rewards of ownership proportionate to their ownership in the
film.

The majority of our produced and acquired films are initially distributed for exhibition in movie
theaters. After their release in movie theaters, we sell and license our films through various methods. We distribute our films globally by selling them on DVDs to retail stores, rental kiosks and subscription by mail services and by selling them
through digital distribution services and video on demand services provided by multichannel video providers, including our Cable Communications segment. We also license our films, including selections from our film library, to cable, broadcast and
premium networks, to subscription video on demand services, and to video on demand and pay-per-view services. The number of films that we license through subscription
video on demand services is increasing as consumers continue to seek additional ways to view our content.

Theme Parks

Our Theme Parks segment consists primarily of our Universal theme parks in Orlando, Florida and Hollywood, California and our 51% interest in
Universal Studios Japan, which we acquired in November 2015. Universal Orlando includes two theme parks, Universal Studios Florida and Universals Islands of Adventure, as well as Universal CityWalk Orlando, a dining, retail and entertainment
complex. Universal Orlando also features on-site themed hotels in which we own a noncontrolling interest. Our Universal theme park in Hollywood, California consists primarily of Universal Studios Hollywood, as
well as Universal CityWalk Hollywood. We continue to expand our theme park business internationally, such as through our plans to develop a Universal Studios theme park in Beijing, China along with a consortium of Chinese state-owned companies. In
addition, we license the right to use the Universal Studios brand name and other intellectual property, and also provide other services, to third parties that own and operate the Universal Studios Singapore theme park on Sentosa Island, Singapore.
We also owned a water park, Wet n Wild in Orlando, Florida, which closed on December 31, 2016, and are developing a new water park, Volcano Bay, in Orlando, Florida, that we plan to open in
mid-2017.

Our Theme Parks segment licenses the right to use a substantial amount of
intellectual property from third parties for its themed elements in rides, attractions and merchandising.

Competition

All of our businesses
operate in intensely competitive, consumer-driven and rapidly changing environments and compete with a growing number of companies that provide a broad range of communications products and services, and entertainment, news and information products
and services, to consumers. Technological changes are further intensifying and complicating the competitive landscape for all of our businesses by challenging existing business models and affecting consumer behavior.

Cable Communications

Competition for our
cable services consists primarily of direct broadcast satellite (DBS) providers, which have a national footprint and compete in all of our service areas, and phone companies with fiber-based networks, which overlap approximately 60% of
our service areas and are continuing to expand the areas they serve. Many of these competitors offer features, pricing and packaging for these services, individually and in bundles, comparable to what we offer, and some of these traditional
competitors also offer smaller online-only video packages. In 2015, AT&T, one of our largest phone company competitors, acquired DIRECTV, the nations largest DBS provider, which created an even larger competitor to our cable services and
has enabled it to enhance its bundled offerings with video, high-speed Internet, and wireline and wireless phone services. AT&T also announced in 2016 a proposed merger with Time Warner Inc., a media and entertainment company, which competes
with our NBCUniversal businesses.

Current and future wireless Internet services, such as 3G, 4G and 5G wireless broadband services and Wi-Fi networks, may compete with our high-speed Internet services, and our voice services are facing increased competition as customers replace wireline phones with wireless phones and Internet-based phone services
such as Skype.

There also continue to be new companies, some with significant financial resources, that offer or are
seeking to offer services that potentially may compete with some or all of our cable services. For example, Google has launched high-speed Internet and video services in a limited number of areas in which we operate and other companies continue to
emerge that provide Internet streaming and downloading of video programming, some of which charge a nominal or no fee.

Video Services

We compete with a number of different sources that provide news, sports, information and entertainment programming to consumers,
including:



DBS providers, including AT&Ts DIRECTV and DISH Network, that transmit satellite signals to substantially all U.S. households to provide video
programming and other information similar to our video services



phone companies, including AT&T and Verizon, that have built and continue to build fiber-based networks that provide cable services similar to ours, which
overlap a substantial portion of our service areas, and that in some cases offer bundled offerings that include wireless phone services



online video distributors that offer online services and devices that enable Internet streaming and downloading of movies, television shows and other video
programming, including linear and video on demand programming, and generally involve the offering of smaller packages of programming networks at prices lower than our traditional video service package offerings



other providers that build and operate wireline communications systems in the same communities that we serve, including those operating as franchised cable
operators



satellite master antenna television systems that offer to their subscribers both improved reception of local broadcast television stations and much of the
programming offered by our cable systems and generally serve MDUs, office complexes and residential developments



other companies, such as local broadcast television stations, that provide multiple channels of free over-the-air programming, as well as video rental services and home entertainment and gaming products

High-Speed Internet Services

We compete with a number of companies offering Internet services, including:



wireline phone companies



Internet service providers



wireless phone companies and other providers of wireless Internet service



satellite broadband providers



power companies



municipal broadband networks

Some phone companies, such as AT&T, CenturyLink, Frontier and Verizon, have
built and are continuing to build fiber-based network infrastructure farther into their networks, which allows them to provide data trans-

mission speeds that exceed those that can be provided with traditional digital subscriber line (DSL) technology, and are now offering these higher-speed services in many of our
service areas. Certain companies that offer DSL service have increased data transmission speeds, lowered prices or created bundled services to compete with our high-speed Internet services.

Google has launched a
fiber-to-the-home network that provides high-speed Internet services in a limited number of areas in which we operate, and
certain municipalities in our service areas are also building fiber-based networks.

Various wireless companies are offering Internet
services using a variety of network types, including 3G and 4G, and in the future 5G, wireless broadband services and Wi-Fi networks. These networks work with devices such as smartphones, laptops, tablets and
mobile wireless routers, as well as wireless data cards. A growing number of commercial venues, such as retail malls, restaurants and airports, also offer Wi-Fi service. Numerous local governments are also
considering or actively pursuing publicly subsidized Wi-Fi and other Internet access networks. The availability of these wireless offerings could negatively impact the demand for our high-speed Internet
services.

Voice Services

Our voice services compete with wireline and wireless phone companies, including incumbent local exchange carriers (ILECs) and
competitive local exchange carriers (CLECs), and other Internet-based and VoIP service providers. Certain phone companies, such as the ILECs AT&T and Verizon, have substantial capital and other resources, longstanding customer
relationships, and extensive existing facilities and network rights-of-way. A few CLECs also have existing local networks and significant financial resources. In
addition, we are increasingly competing with other phone service providers as customers replace traditional wireline phone services with wireless and Internet-based phone services.

Business Services

Our business services primarily compete with a variety of phone
companies, including ILECs and CLECs. These companies either operate their own network infrastructure or rely on reselling all or part of another carriers network. We also compete with satellite operators who offer video services to
businesses.

NBCUniversal Segments

Cable Networks and Broadcast Television

Our cable networks, broadcast networks and owned local broadcast television stations compete for viewers attention and audience share with all forms of programming provided to viewers, including cable,
broadcast and premium networks; subscription video on demand services; local broadcast television stations; home entertainment products; pay-per-view and video on demand
services; online activities, such as social networking and viewing user-generated content; gaming products; and other forms of entertainment, news and information.

Our cable networks, broadcast networks and owned local broadcast television stations compete for the acquisition of programming and for on-air and creative talent with other
cable and broadcast networks, local television stations and subscription video on demand services. The market for programming is very competitive, particularly for sports programming, where the cost for such programming is significant.

Our cable networks compete with other cable networks and programming providers for carriage of their programming by multichannel video providers
and subscription video on demand services. Our broadcast networks compete with the other broadcast networks in markets across the United States to secure affiliations with independently owned television stations, which are necessary to ensure the
effective distribution of broadcast network programming to a nationwide audience.

In addition, our cable television and broadcast television studio production operations compete with
other production companies and creators of content for the acquisition of story properties, for creative, performing and technical personnel, and for distribution of, and consumer interest in, their content.

Filmed Entertainment

Our filmed
entertainment business competes for audiences for its films and other entertainment content with other major studios and, to a lesser extent, with independent film producers, as well as with alternative forms of entertainment. Our competitive
position primarily depends on the number of films we produce, their distribution and marketing success, and consumer response. Our filmed entertainment business also competes to obtain creative, performing and technical talent, including writers,
actors, directors and producers, as well as scripts for films. Our filmed entertainment business also competes with the other major studios and other producers of entertainment content for the exhibition of its films in theaters and for premium
network and digital distribution of its films.

Theme Parks

Our theme parks business competes with other multi-park entertainment companies. We also compete with other providers of entertainment, lodging, tourism and recreational activities. To help maintain the
competitiveness of our theme parks, we have invested and continue to invest in existing and new theme park attractions, hotels and infrastructure.

Advertising

Our cable communications business, cable networks, broadcast networks,
and owned local broadcast television stations compete for the sale of advertising with other television networks and stations, as well as with all other advertising platforms, such as digital, radio and print media. The willingness of advertisers to
purchase advertising from us may be adversely affected by lower audience ratings at our cable networks, broadcast networks and owned local broadcast television stations. Declines in advertising revenue also can be caused by increased competition for
the leisure time of viewers and audience fragmentation and from the growing use of technologies such as DVRs and video on demand services, which give consumers greater flexibility to watch programming on a time-delayed or on-demand basis or to fast-forward or skip advertisements within programming; from subscription video on demand services; and from other online programming.

Seasonality and Cyclicality

Each of our businesses is subject to seasonal and cyclical variations. See Item 7: Managements Discussion and Analysis of Financial
Condition and Results of Operations and refer to the Seasonality and Cyclicality discussion within that section for additional information.

Legislation and Regulation

The Communications Act
of 1934, as amended (the Communications Act), and FCC regulations and policies affect significant aspects of our businesses. Our businesses are also subject to other regulation by federal, state, local and foreign authorities and to
agreements we enter into with local cable franchising authorities. In addition, we must comply with the terms, conditions and commitments of the FCC Order that approved the NBCUniversal transaction in January 2011 (the NBCUniversal
Order) and a consent decree entered into between us, the Department of Justice (DOJ) and five states (the NBCUniversal Consent Decree) in September 2011, which contain conditions and commitments of varying duration,
ranging from three to seven years thereafter.

Legislators and regulators at all levels of government frequently consider changing, and
sometimes do change, existing statutes, rules or regulations, or interpretations of existing statutes, rules or regulations, or

prescribe new ones, any of which may significantly affect our businesses. In addition, in recent years, the FCC and certain states have been more active in considering rulemakings and
legislation, as well as in conducting inquiries and reviews, regarding our services. Any future legislative, judicial, regulatory or administrative actions may increase our costs or impose additional restrictions on our businesses, some of which may
be significant. Congress may consider proposals to address communications issues, including whether it should rewrite the entire Communications Act to account for changes in the communications marketplace, whether it should address the FCCs
authority to implement or enforce open Internet regulations, and whether it should fund new broadband infrastructure. We are unable to predict the effects of any of these or any other further legislative requirements on our businesses. In addition,
with the new Administration in place, the FCC and other agencies may pursue new regulations or seek changes to, or the elimination of, existing regulations, such as the classification of broadband Internet service and requirements relating to the
Internet and privacy. We cannot predict what changes will be sought and, if adopted, how they will affect our businesses.

The following
paragraphs summarize material existing and potential future legal and regulatory requirements affecting our businesses, although reference should be made to the Communications Act, FCC regulations, the NBCUniversal Order, the NBCUniversal Consent
Decree, and other legislation and regulations for further information.

Cable Communications Segment

Video Services

Program Carriage

Cable operators
and other multichannel video providers are prohibited from requiring as a condition of carriage a financial interest in, or exclusive distribution rights for, a video programming network. In addition, FCC regulations, as well as the NBCUniversal
Order, prohibit us from unreasonably restraining the ability of an unaffiliated video programming network to compete fairly by discriminating against the network on the basis of its non-affiliation in the
selection, terms or conditions for its carriage. We have been involved in program carriage disputes at the FCC and may be subject to new complaints in the future.

Must-Carry/Retransmission Consent

Cable operators are required to carry, without
compensation, programming transmitted by most local commercial and noncommercial broadcast television stations. As an alternative to this must-carry requirement, local broadcast television stations may choose to negotiate with the cable
operator for retransmission consent, under which the station gives up its must-carry rights and instead seeks to negotiate a carriage agreement with the cable operator, which frequently will involve payments to the station. We currently
pay certain local broadcast television stations in exchange for their required consent for the retransmission of the stations broadcast programming to our video services customers and expect to continue to be subject to demands for increased
payment and other concessions from local broadcast television stations. For information on must-carry and retransmission consent issues relating to our broadcast television business, see NBCUniversal Segments  Broadcast Television
below and refer to the Must-Carry/Retransmission Consent discussion within that section.

Pricing and Packaging

In 2015, the FCC revised its rate regulations to create a presumption that all local communities are subject to effective competition and should no
longer be subject to rate regulation that limits prices cable operators may charge for basic video service, equipment and installation. That decision has been appealed in federal court. While the FCC has accepted a certification from a Massachusetts
franchising authority that demonstrated an absence of effective competition in a number of the communities we serve in Massachusetts that will allow for

continued rate regulation in those communities, all of the other areas we serve are unregulated. In addition to the FCCs rate regulation rules, certain state entities monitor and may
challenge the marketing and advertising of our services. For example, in 2016, the Washington State Attorney General filed suit in state court alleging our service protection plan, an optional plan that protects customers from incurring charges for
service visits to diagnose and repair installed in-home wiring for residential cable services, violates state consumer protection laws.

Cable Equipment

The Communications Act includes provisions aimed at promoting the
retail availability of set-top boxes and other equipment that can be used to receive digital video services. In 2016, the FCC launched a rulemaking to consider proposed technology mandates on multichannel
video providers aimed at enabling third-party retail video devices to access a providers video service without the need for a provider-supplied set-top box. If implemented, these mandates would impose
substantial costs on us, impair our ability to innovate and have other adverse effects on our business. It is unclear whether the FCC under the new Administration will pursue this proceeding or adopt these rules.

Pole Attachments

The FCC regulates
the rates, terms and conditions that most pole-owning utility companies charge cable operators and telecommunications carriers, including broadband Internet access service providers such as us, for allowing attachments to their poles. States are
permitted to preempt FCC jurisdiction and regulate the rates, terms and conditions of attachments themselves, and many states in which we operate have done so. Most of these states have generally followed the FCCs pole attachment rate
standards, which set rates for telecommunications service pole attachments to levels at or near the rates for cable service attachments. In 2015, the FCC eliminated the ability of utility companies to justify higher rates for telecommunication
service pole attachments. Cable operators had requested this FCC action because the FCCs new open Internet regulations, as described below under the heading Open Internet Regulations, reclassified Internet access service as a
telecommunications service, which could have allowed for higher rental rates to be applied to a majority of our pole attachments. The FCCs order ensuring that pole rates for telecommunications service attachments approximate the cable service
pole rate has been appealed in federal court by the utility companies. Some municipalities have enacted one-touch make ready pole attachment ordinances, which permit third parties to alter
components of our network attached to utility poles in ways that could adversely affect our businesses. We and other providers have filed complaints in federal court challenging these ordinances.

Franchising

Cable operators
generally operate their cable systems under nonexclusive franchises granted by local or state franchising authorities. While the terms and conditions of franchises vary materially from jurisdiction to jurisdiction, franchises typically last for a
fixed term, obligate the franchisee to pay franchise fees and meet service quality, customer service and other requirements, and are terminable if the franchisee fails to comply with material provisions. Franchising authorities also may establish
reasonable requirements for public, educational and governmental access programming, and some of our franchises require substantial channel capacity and financial support for this programming. The Communications Act also contains provisions
governing the franchising process, including renewal procedures designed to protect incumbent franchisees against arbitrary denials of renewal. We believe that our franchise renewal prospects are generally favorable but cannot guarantee the future
renewal of any individual franchise.

Approximately half of the states in which we operate provide for statewide franchising or have
simplified local franchising requirements for new entrants. Some allow new entrants to operate on more favorable terms than our current operations, for instance by not requiring that the new entrant provide service to all parts of the franchise area
or permitting the new entrant to designate only those portions it wishes to serve. Certain states allow incumbent cable operators such as us to opt in to the new state franchise immediately or later

when a competing state franchise has been issued, although even in those states, incumbent cable operators may be required to retain certain franchise obligations that are more burdensome than
the new entrants state franchise.

High-Speed Internet Services

We provide high-speed Internet services to our customers. Many of these services are subject to a number of regulatory obligations described below, including open Internet regulations prescribed by the FCC and
certain common carrier regulations under Title II of the Communications Act. As an Internet service provider (ISP), we are also subject to a requirement to implement certain network capabilities to assist law enforcement in conducting
surveillance of persons suspected of criminal activity. From time to time, the FCC considers imposing new regulatory obligations on ISPs, including, for example, proposals to require broadband network outage reporting. New broadband regulations, if
adopted, may have adverse effects on our businesses.

Open Internet Regulations

In 2015, the FCC reclassified broadband Internet access service as a telecommunications service subject to new open Internet regulations
and certain common carrier regulations under Title II of the Communications Act, including requirements that charges and practices of ISPs for and in connection with broadband Internet access service be just, reasonable and not unjustly or
unreasonably discriminatory. However, the FCC refrained from implementing a number of utility-style regulations that might otherwise apply under Title II, such as rate regulation, tariffs and unbundling requirements.

The new open Internet regulations bar ISPs from blocking access to lawful content, applications, services or
non-harmful devices; prohibit ISPs from impairing or degrading lawful Internet traffic on the basis of content, applications or services, or impairing or degrading the use of
non-harmful devices; prohibit ISPs from favoring lawful traffic from one provider of Internet content, applications or services (called an edge provider) over lawful traffic of another edge
provider in exchange for consideration (paid prioritization); establish a new general conduct standard that prohibits ISPs from unreasonably interfering with or unreasonably disadvantaging the ability of consumers to select,
access and use the lawful Internet content, applications, services or devices of their choosing or of edge providers to make lawful content, applications, services or devices available to consumers; and require ISPs to disclose information regarding
network management, performance and commercial terms of the service. In addition, interconnection arrangements, which govern how Internet traffic is exchanged between high-speed Internet networks and provide direct, dedicated interconnection
capacity to edge providers, are now subject to FCC oversight under Title II of the Communications Act. All of these regulations are subject to FCC enforcement and could give rise to third-party claims for damages or equitable relief. These
requirements could adversely affect our business, although the extent to which they do so will depend upon the manner in which the FCC interprets and enforces them.

In June 2016, a panel of the United States Court of Appeals for the District of Columbia affirmed the FCCs new open Internet regulations on appeal. Petitions have been filed requesting a rehearing of the
decision. In addition, Congress may consider legislation addressing these regulations, and the FCC under the new Administration may also revisit the rules. We cannot predict whether or how the rules might be changed. States have attempted, and may
continue to attempt, to use the FCCs open Internet decision to justify imposing new regulations and taxes and fees on ISPs that could adversely affect our business.

Separate and apart from the FCCs new open Internet regulations, we committed to be bound by the FCCs original open Internet regulations adopted in 2010 as a condition of the NBCUniversal
Order and the NBCUniversal Consent Decree until 2018, although we did not agree to be bound by any future open Internet regulations. As a result, among other things, we cannot block access to lawful Internet content, applications, services or non-harmful devices or unreasonably discriminate in transmitting lawful Internet network traffic, although we may engage in reasonable network management.

In April 2016, the FCC proposed new regulations for business data services (formerly special access services), which provide dedicated point-to-point transmission of data at certain guaranteed speeds and service levels using high-capacity connections. The FCC proposed new rate regulation and other regulatory mandates that could apply to
business data services offered by cable companies. The proposed rules or any variation of the proposed rules, if implemented, could impose substantial costs on us and have other significant adverse effects on our business. It is uncertain whether
the FCC under the new Administration will pursue this proceeding or adopt these rules.

NBCUniversal Order/Consent Decree Conditions

The NBCUniversal Order and NBCUniversal Consent Decree include various conditions and commitments requiring us to offer all of our
broadband Internet access service speed tiers on a stand-alone basis at reasonable market-based prices, to maintain a broadband Internet access service of at least 12 Mbps downstream across most of our footprint, and to avoid discrimination in how
we treat specialized services (defined as services we provide over the same last-mile facilities as our broadband Internet access service, but not including our broadband Internet access service, video services or voice services).

Municipally Owned Broadband Networks

A number of local municipalities operate municipally-owned broadband networks. Certain states have enacted laws that restrict or prohibit local municipalities from operating municipally owned broadband networks.
The FCCs efforts to preempt such laws in Tennessee and North Carolina were overturned in 2016 by the United States Court of Appeals for the Sixth Circuit. However, there may be further efforts by local governments to expand or create
government-owned networks and there may also be efforts in state legislatures to restrict the development of government-owned networks or to ease or facilitate such networks. In addition, as part of any federal infrastructure program, governmental
subsidies or funding of additional Internet broadband networks may be encouraged. We cannot predict how successful those efforts will be and how they might affect our business.

Voice Services

We provide voice services using VoIP technology. The FCC has adopted a number
of regulations for providers of nontraditional voice services such as ours, including regulations relating to privacy of customer proprietary network information, local number portability duties and benefits, disability access, E911, law enforcement
assistance, outage reporting, Universal Service Fund contribution obligations and certain regulatory filing requirements. The FCC has not yet ruled on whether VoIP services such as ours should be classified as an information service or a
telecommunications service under the Communications Act. The classification determination is important because telecommunications services are regulated more extensively than information services. State regulatory commissions and
legislatures may continue to investigate imposing regulatory requirements on our voice services, and the FCCs open Internet regulations reclassifying Internet access as a telecommunications service may further encourage state-level regulatory
actions.

Voice Interconnection

Because the FCC has not determined the appropriate classification of our voice services, providers of VoIP services typically either secure CLEC authorization or obtain interconnection to traditional wireline phone
company networks by contracting with an existing CLEC, which has the right, as a telecommunications carrier, to request and obtain interconnection with the traditional wireline phone companies. We have arranged for such interconnection rights
through affiliated CLECs. If a regulatory or judicial authority were to deny our ability to interconnect through one of our affiliated CLECs, our ability to provide voice services and compete in the area in question would be negatively impacted. The
FCC regulates the arrangements by which telecommunications carriers compensate one another for exchanged traffic and has affirmed the right of CLECs to collect intercarrier compensation when providing interconnection for VoIP providers.

The federal Universal Service program generally requires us and other phone service providers to pay a fee based on revenue from their services into a fund used to subsidize the provision of telecommunications
services in high-cost areas and to low-income consumers and the provision of Internet and telecommunications services to schools, libraries and certain health care providers. Some states also have analogous
programs that support service in high-cost areas or to low-income consumers. The FCC has long considered implementing changes to the Universal Service program, such as changing the fee calculation from a
revenue-based formula to a per-user fee or per-connection fee, adopting a fee based on bandwidth, and expanding the services subject to the fee to include broadband
Internet access services. We are unable to predict if or how the FCC may change the Universal Service program, or the effects any such changes would have on our businesses.

The FCC recently has shifted its focus away from supporting traditional telephone service, and toward subsidizing broadband deployment. This shift could assist some of our competitors. For example, in 2014, the FCC
substantially revised the program that provides Universal Service support for services to schools and libraries to shift support from voice services to broadband services and the deployment of Wi-Fi networks.
Similarly, the FCC has expanded its Lifeline subsidy program for low-income consumers to include broadband services in addition to voice services. The FCC under the new Administration or Congress may revisit
these subsidy programs and how they are funded. We cannot predict whether or how these programs will be changed.

The FCC and Congress have considered proposals that would require companies that own multiple cable networks to make each of their networks
available individually when negotiating distribution agreements with MVPDs and potentially with online video distributors (OVDs). We currently offer our cable networks both on a bundled basis and, when requested, individually.

Under the terms of the NBCUniversal Order, MVPDs in certain circumstances can invoke commercial arbitration for access to our cable
networks and broadcast television networks, including our regional sports networks. In addition, under the NBCUniversal Order and NBCUniversal Consent Decree, we are required to make certain of our cable network, broadcast television and filmed
entertainment programming available to bona fide OVDs in certain circumstances. For further discussion of these conditions, see Broadcast Television below and refer to the Must-Carry/Retransmission Consent and Internet
Distribution discussions within that section.

Childrens Programming

Under federal regulations, the amount of commercial content that may be shown on cable networks, broadcast networks and broadcast television
stations during programming originally produced and broadcast primarily for an audience of children under 13 years of age is limited, and certain television station programming must serve the educational and informational needs of children under 17
years of age. In addition, the NBCUniversal Order includes certain commitments and conditions related to childrens television and advertising directed at children.

Local broadcast television stations may be operated only in accordance with
a license issued by the FCC upon a finding that the grant of the license will serve the public interest, convenience and necessity. The FCC grants broadcast television station licenses for specific periods of time, which may be renewed with or
without conditions. Substantially all of our broadcast television station licenses have pending applications for renewal, although our stations authority to operate is automatically extended while a renewal application is under review. Several
of these applications have been opposed by third parties. Although our licenses have been renewed in the past, there can be no assurance that we will always obtain renewal grants.

Ownership Limits

FCC regulations limit the ability of individuals and entities to
have attributable interests above specific ownership levels in local television stations and place limitations on ownership of other specified mass media entities, such as limits on the cross-ownership of broadcast television stations
and newspapers in the same market. The FCC is in the process of reviewing these ownership regulations.

Local Television Ownership

Under FCC regulations, a licensee generally may own up to two broadcast television stations in the same DMA, as long as at least one
of the stations is not among the top four-ranked stations in the market based on audience share and there are at least eight independently owned and operating full-power broadcast television stations in the market. Without regard to the number of
remaining independently owned television stations, ownership of more than one television station within the same DMA is permitted so long as certain signal contours of the stations involved do not overlap.

National Television Ownership

The Communications Act and FCC regulations limit the number of broadcast television stations one entity may own or control nationally. No entity may
have an attributable interest in broadcast television stations that reach, in the aggregate, more than 39% of all U.S. television households. The FCC also has adopted a rule that eliminates a 50% discount formerly afforded to UHF stations (channels
14 and above) in calculating the extent of an individual station owners holdings under the national cap. Our owned broadcast television station reach does not exceed this limit, but the elimination of this discount places us closer to the
national cap and limits our flexibility to acquire stations in the future.

Foreign Ownership

The Communications Act generally limits foreign ownership in a broadcast television station to 20% direct ownership and 25% indirect ownership,
although the limit on indirect ownership can be waived if the FCC finds it to be in the public interest.

Dual Network Rule

Each of the four major broadcast television networks  ABC, CBS, Fox and NBC  is prohibited from being under common
ownership or control with another of the four.

Must-Carry/Retransmission Consent

Every three years, each commercial television station must elect for each cable system in its DMA either must-carry or retransmission consent. A
similar regulatory scheme applies to satellite providers. For the current period, which ends on December 31, 2017, all of our owned NBC broadcast television stations and our owned Telemundo broadcast television stations elected retransmission
consent.

In enacting the STELA Reauthorization Act of 2014, Congress modified certain aspects of the compulsory copyright licenses
under which satellite providers and cable operators retransmit broadcast television sta-

tions. Congress also is considering legislation that would modify the must-carry and retransmission consent regime. Under conditions imposed in the NBCUniversal Order, MVPDs may invoke commercial
arbitration to resolve disputes regarding carriage of our owned local broadcast television stations.

Internet Distribution

The NBCUniversal Order and NBCUniversal Consent Decree establish certain obligations and restraints concerning distribution of our content online.
We must make available certain of our cable network, broadcast television and filmed entertainment programming to bona fide OVDs in certain circumstances, and they may invoke commercial arbitration to resolve disputes over access to such
programming. We also must distribute programming via nbc.com that is generally equivalent to the programming that we distributed via nbc.com as of January 1, 2011, on generally equivalent prices, terms and conditions, so long as at least one of
the other major broadcast networks continues to distribute its programming in a similar fashion. We are one of three broadcast network owners of Hulu, but we have no voting rights or board representation. We have entered into renewal license
agreements with Hulu on substantially the same terms as its other broadcast network owners.

Indecency

A federal statute and FCC regulations prohibit the broadcast of obscene material on television stations at any time and indecent or profane material
between the hours of 6 a.m. and 10 p.m. From time to time, we have received and may receive in the future letters of inquiry from the FCC prompted by complaints alleging that certain programming on our owned local broadcast television stations
included indecent or profane material.

Filmed Entertainment

Our filmed entertainment business is subject to trade practice laws in effect in 25 states and Puerto Rico relating to theatrical distribution of motion pictures. In countries outside the United States,
a variety of existing or contemplated laws and regulations may affect our ability to distribute and license motion picture and television products, as well as consumer merchandise products. The ability of countries to deny market access or refuse
national treatment to products originating outside their territories is regulated under various international agreements.

Theme Parks

Our theme parks are subject to various regulations, including laws and regulations regarding environmental protection, privacy and
data protection, consumer product safety and theme park operations, such as health, sanitation, safety and fire standards, as well as liquor licenses.

Other Areas of Regulation

Intellectual Property

Copyright, trademark, unfair competition, patent, trade secret and other
proprietary-rights laws of the United States and other countries help protect our intellectual property rights. In particular, piracy of programming and films through unauthorized distribution of counterfeit DVDs, peer-to-peer file sharing and other platforms presents challenges for our cable networks, broadcast television and filmed entertainment businesses. The unauthorized reproduction, distribution or display of
copyrighted material over the Internet or through other methods of distribution, such as through devices, software or websites that allow the reproduction, viewing, sharing and/or downloading of content by either ignoring or interfering with the
contents security features and copyrighted status, interferes with the market for copyrighted works and disrupts our ability to exploit our content. The extent of copyright protection and the use of technological protections, such as
encryption, are controversial. Modifications to existing laws that weaken these protections could have an adverse effect on our ability to license and sell our programming.

While many legal protections exist to combat piracy, laws in the United States and internationally
continue to evolve, as do technologies used to evade these laws. We have actively engaged in the enforcement of our intellectual property rights and likely will continue to expend substantial resources to protect our content. The repeal of laws
intended to combat piracy and protect intellectual property or weakening of such laws or enforcement in the United States or internationally, or a failure of existing laws to adapt to new technologies, could make it more difficult for us to
adequately protect our intellectual property rights, which could negatively affect their value and further increase the costs of enforcing our rights.

Copyright laws also require that we contribute a percentage of revenue to a federal copyright royalty pool in exchange for retransmitting copyrighted material in broadcast signals under a compulsory license and
that we pay standard industry licensing fees for the public performance of music in the programs we distribute, such as local advertising and local origination programming on our cable systems, as well as in the content we create. The fees we pay to
music performance rights organizations are typically renegotiated when we renew licenses with those organizations, while the royalties we contribute to the copyright royalty pool for broadcast signals can be challenged by copyright owners in annual
audits, and we cannot predict what those fees will be in the future or if disputes will arise over them. In addition, in response to a 2014 FCC decision eliminating the FCCs sports blackout rule, which previously enabled sports
teams to insist that cable operators black out sports events not available on local broadcast signals, the leading sports leagues petitioned the Copyright Royalty Board to impose a copyright surcharge on cable operators to compensate sports teams
for the loss of programming exclusivity, and that proceeding is now pending.

There has been litigation related to a number of online
entities that stream our broadcast television content online without the consent of, or compensation to, NBC or its affiliates. In 2014, the U.S. Supreme Court ruled that one such entity, Aereo, violated the broadcasters exclusive right to
perform their copyrighted works publicly. Subsequently, Aereo sought to operate as a cable system under the Copyright Act. Although the U.S. Copyright Office rejected its application for a compulsory copyright license, other companies continue to
seek legislation or court rulings to obtain a compulsory license to stream broadcast programming online.

Privacy and Data Security Regulation

The Communications Act generally restricts the nonconsensual collection and disclosure to third parties of cable customers
personally identifiable information by cable operators, except for rendering service, conducting legitimate business activities related to the service, and responding to legal requests. We are also subject to various state and federal regulations
that provide privacy protections for customer proprietary network information related to our voice services.

As a result of the
FCCs 2015 decision to reclassify broadband Internet access service as a telecommunications service subject to Title II of the Communications Act, the FCC has concluded that ISPs are subject to FCC regulations regarding the use and
disclosure of certain customer information. Specifically, in October 2016, the FCC adopted new privacy and data security regulations governing the use of certain customer information by telecommunications carriers, including ISPs and providers of
VoIP services such as ours. Under these new regulations, we may use, disclose or permit access to any customer non-sensitive proprietary information subject to the customers ability to opt out, but must obtain
opt-in approval from the customer to use, disclose or permit access to customer sensitive proprietary information, with certain exceptions. The new regulations also impose breach notification obligations and
data security requirements. These new rules are more stringent than the FTCs privacy rules that previously applied to ISPs and could have adverse effects on our ability to compete in the highly concentrated online advertising market. The FCC
under the new Administration or Congress may revisit and revise these new rules, although we cannot predict whether or how the rules might be changed.

In addition to FCC privacy regulations governing ISPs, the FTC generally exercises authority over
privacy protections applicable to some of our other businesses by using its existing authority over unfair and deceptive acts or practices to apply greater restrictions on the collection and use of personally identifiable and other information
relating to consumers. It also has undertaken numerous enforcement actions against parties that do not provide sufficient security protections against the loss or unauthorized disclosure of this type of information. However, a recent court decision
has raised questions regarding the extent of FTC jurisdiction over companies like us, whose service offerings include some common carrier services. The FTC has appealed this decision. We cannot predict the outcome of the litigation or the impact of
the decision on our business. We also are subject to stringent data security and data retention requirements that apply to website operators and online services directed to children under 13 years of age, or that knowingly collect or post personal
information from children under 13 years of age. Other privacy-oriented laws have been extended by courts to online video providers and are increasingly being used in privacy lawsuits, including class actions, against providers of video materials
online.

We are also subject to state and federal do not call laws regarding telemarketing and state and federal laws
regarding unsolicited commercial emails, as well as FCC regulations relating to automated telemarketing calls, texts and SMS messages. The FTC and state attorneys general also have initiated efforts to increase and enforce transparency requirements
about the collection and use of consumer information, even in an aggregated, non-customer-identifiable form, which may require ongoing review of new and rapidly evolving technologies and methods for delivering
content and advertising to ensure that appropriate notice is given to consumers and consent is obtained where required.

We are also
subject to state and federal laws and regulations regarding data security that primarily apply to sensitive personal information that could be used to commit identity theft. Most states have security breach notification laws that generally require a
business to give notice to consumers and government agencies when certain information has been disclosed due to a security breach, and the FCC has adopted security breach rules for voice services and broadband Internet access services. Several
states have also enacted general data security requirements to safeguard consumer information, including the proper disposal of consumer information.

The National Institute of Standards and Technology (NIST), in cooperation with other federal agencies and owners and operators of U.S. critical infrastructure, including us, have developed a voluntary
framework that provides a prioritized, flexible, repeatable, performance-based and cost-effective approach to cybersecurity risk. It is a compendium of existing cross-sector cyber-defense processes, practices and protocols that can help companies
identify, assess and manage their cyber risks and vulnerabilities, and several government agencies have encouraged compliance with this framework. NIST recently proposed draft updates to this voluntary framework and is collecting feedback on the
draft. In June 2016, the Department of Homeland Security and the Department of Justice, in collaboration with other federal agencies, released final guidance regarding the sharing of cyber threat indicators and defensive measures between and among
Federal and Non-Federal entities under the Cybersecurity Act of 2015. Finally, there are pending legislative proposals that could impose new requirements on owners and operators of critical infrastructure,
including us, and the FCC is considering expanding its cybersecurity guidelines or adopting new cybersecurity requirements.

FCC Spectrum Auction

Congress has authorized the FCC to conduct an auction to repurpose some broadcast spectrum to mobile broadband use. In this auction,
licensees of full-power and Class A television stations have the opportunity to sell some or all of their spectrum rights in exchange for cash. TV stations that do not voluntarily sell their spectrum rights may be assigned new channels on which
to operate, but the FCC must make all reasonable efforts to preserve those stations over-the-air coverage areas and populations served, and to
reimburse them for reasonable relocation costs (subject to an aggregate limit of $1.75 billion).

NBCUniversal has submitted applications with the FCC indicating its potential interest in selling
broadcast spectrum rights, and we have filed an application to bid on new mobile broadband licenses. Filing an application in the auction does not create any obligation to sell, bid on or buy spectrum.

Bidding in the auction began in May 2016 and is still ongoing. We cannot predict the outcome of the auction or the impact the outcome may have on
our business.

State and Local Taxes

Some states and localities have imposed or are considering imposing, through both legislative and administrative channels, new or additional taxes or fees on, or limiting or eliminating incentives or credits earned
or monetized by, the businesses operated by our Cable Communications and NBCUniversal segments, or imposing adverse methodologies by which taxes, fees, incentives or credits are computed, earned or monetized. These include combined reporting or
other changes to general business taxes, central assessments for property tax, and taxes and fees on the businesses operated or services provided by our Cable Communications and NBCUniversal segments. In some situations, DBS providers and other
competitors that deliver their services over a high-speed Internet connection do not face the same state tax and fee burdens. Congress has also considered, and may consider again, proposals to bar or limit states from imposing taxes on these DBS
providers or other competitors that are equivalent to the taxes or fees that we pay. The Internet Tax Freedom Act, which prohibits most states and localities from imposing sales and other taxes on our Internet access charges, has now been made
permanent by 2016 legislation; however, some jurisdictions have or may assert that certain taxes akin to right-of-way fees are not preempted by Internet Tax Freedom Act.
The FCCs reclassification of broadband Internet access services as Title II telecommunications services may cause or allow, directly or indirectly, some states and localities to impose various other taxes and fees on our high-speed Internet
business.

Environmental Matters

Certain of our business operations are subject to environmental laws and regulations since they involve air emissions, wastewater discharges, and
the use, disposal and cleanup of toxic and hazardous substances. Any failure to comply with environmental requirements could result in monetary fines, civil or criminal sanctions, third-party claims, or other costs or liabilities.

Environmental requirements have become more stringent over time, and pending or proposed new regulations could impact our operations or costs. For
example, climate change regulation, such as proposed greenhouse gas emissions limits or cap and trade programs, could result in an increase in the cost of electricity, which is a significant component of our operational costs for some aspects of our
businesses.

Other Regulations

Federal regulators actively regulate other aspects of our businesses, including accessibility to our video and voice services and broadcast
television programming for people with disabilities, customer service standards, inside wiring, leased access, loudness of commercial advertisements, advertising, Emergency Alert System, equal employment opportunity, lottery programming,
recordkeeping and public file access requirements, regulatory fees and technical standards relating to the operation of cable systems and television stations. We are occasionally subject to enforcement actions at the FCC, which can result in us
having to pay fines to the agency or being subject to other sanctions. We also are subject to various international regulations, including those that cover television broadcasting, programming and advertising.

As of December 31, 2016, we had approximately 159,000 full-time and part-time employees calculated on a full-time equivalent basis. Of these employees, approximately 91,000 and 58,000 were associated with our
cable communications business and our NBCUniversal businesses, respectively. We also use freelance and temporary employees in the normal course of our business.

Caution Concerning Forward-Looking Statements

The SEC encourages companies to disclose
forward-looking information so that investors can better understand a companys future prospects and make informed investment decisions. In this Annual Report on Form 10-K, we state our beliefs of
future events and of our future financial performance. In some cases, you can identify these so-called forward-looking statements by words such as may, will,
should, expects, believes, estimates, potential, or continue, or the negative of these words, and other comparable words. You should be aware that these statements are only our
predictions. In evaluating these statements, you should consider various factors, including the risks and uncertainties listed in Risk Factors and in other reports we file with the SEC.

Additionally, we operate in a highly competitive, consumer-driven and rapidly changing environment. This environment is affected by government
regulation; economic, strategic, political and social conditions; consumer response to new and existing products and services; technological developments; and, particularly in view of new technologies, the ability to develop and protect intellectual
property rights. Our actual results could differ materially from our forward-looking statements as a result of any of such factors, which could adversely affect our businesses, results of operations or financial condition. We undertake no obligation
to update any forward-looking statements.

Item 1A: Risk Factors

Our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not
compete effectively.

All of our businesses operate in intensely competitive, consumer-driven and rapidly changing environments and
compete with a growing number of companies that provide a broad range of communications products and services and entertainment, news and information content to consumers. Technological changes are further intensifying and complicating the
competitive landscape and influencing consumer behavior, which is discussed in the risk factor immediately below under the heading Changes in consumer behavior driven by new technologies and distribution platforms for viewing content may
adversely affect our businesses and challenge existing business models.

Competition for our cable services consists primarily of
DBS providers and phone companies with fiber-based networks that typically offer features, pricing and packaging for services comparable to ours. In 2015, AT&T, our largest phone company competitor, acquired DirecTV, the nations largest
DBS provider to create an even larger competitor that also has its own wireless phone facilities, which we do not, and in 2016, announced a proposed merger with Time Warner, a media and entertainment company. Some of these competitors have begun
offering smaller packages of channels at price points lower than our standard packages, both through traditional and online distribution platforms, which could cause us to offer more customized programming packages that may be less profitable. In
addition, if consolidation between wireless distributors and content providers occurs, some of our competitors may offer free or lower cost streaming services for viewing their content through unlimited data-usage plans for their Internet or
wireless phone serv-

ices. Additional companies, some with significant financial resources, continue to enter or are seeking to enter the video distribution market, primarily by offering online video programming
services that can be viewed live, through streaming services or by downloading.

Current and future wireless Internet services, such as
3G, 4G and 5G wireless broadband services and Wi-Fi networks, and devices such as wireless data cards, tablets and smartphones, and mobile wireless routers that connect to such devices, may compete with our
high-speed Internet services. Our voice services are facing increased competition as customers replace wireline phones with wireless and Internet-based phone services.

Our cable communications business continues to seek ways to enhance the value of our cable services network, such as by growing our high-speed Internet and business services businesses and by launching additional
services, such as our home security and automation services. There can be no assurance that we can execute on these and other initiatives in a manner sufficient to grow or maintain our Cable Communications segment revenue, maintain our Cable
Communications segment operating margin, or to compete successfully in the future.

Each of NBCUniversals businesses also faces
substantial and increasing competition from providers of similar types of content, as well as from other forms of entertainment and recreational activities. NBCUniversal must compete to obtain talent, programming and other resources required in
operating these businesses.

The ability of all of our businesses to compete effectively depends on our perceived image and reputation
among our various constituencies, including our customers, consumers, advertisers, investors and government authorities. Our ability to compete may be negatively affected if we do not provide our customers with a satisfactory customer experience.

There can be no assurance that we will be able to compete effectively against existing or new competitors or that competition will not
have an adverse effect on our businesses. For a more detailed description of the competition facing our businesses, see Item 1: Business and refer to the Competition discussion within that section.

Changes in consumer behavior driven by new technologies and distribution platforms for viewing content may adversely affect our businesses and
challenge existing business models.

New technologies and platforms for the distribution, sale and viewing of content have been, and
will likely continue to be, developed that further increase the number of competitors that all our businesses face and challenge existing business models. These technologies and distribution platforms are driving changes in consumer behavior as
consumers seek more control over when, where and how they consume content and access communications services.

While our cable
communications business is attempting to adapt to changing consumer behaviors, for example, by deploying our X1 platform, cloud DVR technology and apps such as Netflix on our X1 set top boxes, new and traditional competitors, as well as some
programming networks, continue to launch subscription video on demand services, live online broadcast and cable television streaming services and downloading services that can be viewed on television sets, computers, smartphones and tablets. Many of
these service offerings charge no fee or a lower fee than our traditional video packages for access to their content, which could have an adverse effect on demand for our video services, including for expanded digital video packages, premium
networks, and our DVR and On Demand services.

New technologies and distribution platforms, together with an increasing number of
companies offering their content directly to consumers over the Internet, including some that also offer exclusive high-quality original

video programming, have increased the number of entertainment choices available to consumers, which has intensified audience fragmentation. The increase in entertainment choices has and may
continue to reduce the number of subscribers to our cable networks. Time-shifting technologies, such as DVRs and cloud-based recording services and video on demand services, reduce the viewing of content through traditional linear television
distribution outlets. Reduced viewing of our content through traditional linear television distribution outlets has caused and will likely continue to cause audience ratings declines for NBCUniversals linear television content and may
adversely affect the price and amount of advertising that advertisers are willing to purchase from us and the amount NBCUniversal receives for distribution of its content.

The success of any of these ongoing or future developments or our failure to effectively anticipate or adapt to emerging competitors or changes in consumer behavior, including among younger consumers, could have an
adverse effect on our competitive position, businesses and results of operations.

A decline in advertisers expenditures or
changes in advertising markets could negatively impact our businesses.

Our cable communications, cable networks and broadcast
television businesses compete for the sale of advertising time with other television networks and stations, as well as with all other advertising platforms, such as digital media, as well as radio and print. We derive substantial revenue from the
sale of advertising, and a decline in expenditures by advertisers, including through traditional linear television distribution models, could negatively impact our results of operations. Declines can be caused by the economic prospects of specific
advertisers or industries, increased competition for the leisure time of viewers and audience fragmentation, the growing use of new technologies, or the economy in general. In addition, advertisers willingness to purchase advertising from us
may be adversely affected by lower audience ratings, which many of our networks have experienced and likely will continue to experience. Advertising sales and rates also are dependent on the methodology used for audience measurement and could be
negatively affected if methodologies do not accurately reflect actual viewership levels. For example, certain methods of viewing content, such as delayed viewing on DVRs or viewing content online, might not be counted in audience measurements or may
generate less, if any, revenue than traditional distribution methods, which could have an adverse effect on our advertising revenue. Reductions in advertisers expenditures could adversely affect our revenue and businesses.

Our success is, to a large extent, dependent on our ability to acquire, develop, adopt and leverage new and existing technologies, and our
competitors use of certain types of technology and equipment may provide them with a competitive advantage. For example, current and new wireless Internet technologies such as 4G and 5G wireless broadband services continue to evolve rapidly to
allow for greater speed and reliability, and some companies and municipalities are building advanced fiber-based networks that provide very fast Internet access speeds. We expect other advances in communications technology to occur in the future. If
we choose technology or equipment that is not as effective or attractive to consumers as that employed by our competitors, if we fail to employ technologies desired by consumers before our competitors do so, or if we fail to execute effectively on
our technology initiatives, our businesses and results of operations could be adversely affected. We also will continue to incur additional costs as we execute our technology initiatives, such as the deployment of DOCSIS 3.1, X1 set-top boxes, wireless gateways and cloud DVR technology, and there can be no assurance that we can execute on these and other initiatives in a manner sufficient to grow or maintain our revenue or to compete
successfully in the future. We also may incur increased costs if changes in our competitors product offerings require that we offer certain of our existing services or enhancements at a lower or no cost to our customers or that we make
additional research and development expenditures.

We are subject to regulation by federal, state, local and foreign authorities, which may impose
additional costs and restrictions on our businesses.

Federal, state and local governments extensively regulate the video, high-speed
Internet and voice services industries. Our broadcast television business is also highly regulated by federal laws and regulations. Our cable networks, filmed entertainment and theme parks businesses are also subject to various other laws and
regulations at the international, federal, state and local levels, including laws and regulations relating to environmental protection, which have become more stringent over time, and the safety of consumer products and theme park operations. In
addition, we are subject to the NBCUniversal Order and the NBCUniversal Consent Decree, which have imposed numerous conditions on our businesses relating to the treatment of competitors and other matters. In recent years, the FCC and certain states
also have been more active in conducting inquiriesand reviews regarding our services, and this trend may continue. Failure to comply with the laws and regulations applicable to our businesses could result in administrative enforcement
actions, fines, and civil and criminal liability. For a more extensive discussion of the significant risks associated with the regulation of our businesses, see Item 1: Business and refer to the Legislation and Regulation discussion
within that section.

Changes to existing statutes, rules, regulations, or interpretations thereof, or adoption of new ones, could
have an adverse effect on our businesses.

Legislators and regulators at all levels of government frequently consider changing, and
sometimes do change, existing statutes, rules, regulations, or interpretations thereof, or prescribe new ones, which may significantly affect our businesses. In addition, in recent years, the FCC and certain states have been more active in
considering rulemakings and legislation regarding our services. Any future legislative, judicial, regulatory or administrative actions may increase our costs or impose additional restrictions on our businesses, some of which may be significant. In
addition, Congress is expected to consider proposals to address communications issues, including whether it should rewrite the entire Communications Act to account for changes in the communications marketplace, whether it should address the
FCCs authority to implement or enforce open Internet regulations, and whether it should fund new broadband infrastructure. We are unable to predict the effects of any of these or any other further legislative requirements on our businesses,
nor can we predict how the FCC or other agencies under the new Administration will address regulatory matters affecting our businesses. Any changes to the legal and regulatory framework applicable to any of our services or businesses could have a
negative impact on our businesses and results of operations.

We expect programming expenses for our video services to
continue to be our Cable Communications segments largest single expense item and to increase in the foreseeable future. The multichannel video provider industry has experienced continued increases in the cost of programming, especially sports
programming, which we expect will continue for the foreseeable future. Our programming expenses may also increase as we add programming to our video services or distribute existing programming to more of our customers or through additional delivery
platforms, such as On Demand or streaming services. Additionally, in the past few years, we have begun paying certain local broadcast television stations in exchange for their required consent for the retransmission of broadcast network programming
to our video services customers; we expect to continue to be subject to increasing demands for payment and other concessions from local broadcast television stations. These market factors may be exacerbated by increased consolidation in the media
industry, which may further increase our programming expenses. If we are unable to raise our customers rates or offset programming cost increases through the sale of additional services, the increasing cost of programming could have an adverse
effect on our Cable Communications segments results of operations. Moreover, as our contracts with content providers expire, there can be no assurance that they will be renewed on acceptable terms or that they will be renewed at all, in which
case we may be unable to provide such content as part of our video services, and our businesses and results of operations could be adversely affected.

NBCUniversals success depends on consumer acceptance of its content, and its businesses may
be adversely affected if its content fails to achieve sufficient consumer acceptance or the costs to create or acquire content increase.

Most of NBCUniversals businesses create and acquire media and entertainment content, the success of which depends substantially on consumer tastes and preferences that change in often unpredictable ways. The
success of these businesses depends on our ability to consistently create, acquire, market and distribute cable network and broadcast television programming, filmed entertainment, theme park attractions and other content that meet the changing
preferences of the broad domestic and international consumer markets. We have invested, and will continue to invest, substantial funds in our content, including in the production of original content on our cable networks and broadcast television
networks, in our films and for theme park attractions, before learning the extent to which it would earn consumer acceptance.

We also
obtain a significant portion of our content from third parties, such as movie studios, television production companies, sports organizations and other suppliers. Competition for popular content, particularly for sports programming, is intense, and
we may have to increase the price we are willing to pay or be outbid by our competitors for popular content. Entering into or renewing contracts for such programming rights or acquiring additional rights may result in significantly increased costs.
Particularly with respect to long-term contracts for sports programming rights, our results of operations and cash flows over the term of a contract depend on a number of factors, including the strength of the advertising market, our audience size,
the ability to secure distribution from and impose surcharges or obtain carriage on multichannel video providers for the content, and the timing and amount of our rights payments. There can be no assurance that revenue from these contracts will
exceed our costs for the rights, as well as the other costs of producing and distributing the programming. If our content does not achieve sufficient consumer acceptance, or if we cannot obtain or retain rights to popular content on acceptable
terms, or at all, our businesses may be adversely affected.

The loss of NBCUniversals programming distribution agreements, or
the renewal of these agreements on less favorable terms, could adversely affect its businesses.

Our cable networks depend on their
ability to secure and maintain distribution agreements with multichannel video providers, and if a network does not attract sufficient viewers, multichannel video providers may decide not to distribute the network. Our broadcast television networks
depend on their ability to secure and maintain network affiliation agreements with third-party local broadcast television stations in the markets where we do not own the affiliated local broadcast television station. In addition, every three years,
each of our owned local broadcast television stations must elect, with respect to its retransmission by multichannel video providers within its DMA, either must-carry status, in which the distributors carriage of the station is
mandatory and does not generate any compensation for the local station, or retransmission consent, in which the station gives up its right to mandatory carriage and instead seeks to negotiate the terms and conditions of carriage with the
distributor, including the amount of compensation, if any, paid to the station by such distributor. All of our NBC and Telemundo owned local broadcast television stations have elected retransmission consent through December 31, 2017.
Increasingly, our cable networks, broadcast television and filmed entertainment businesses have entered into agreements to license their prior season and library content on other distribution platforms, including subscription video on demand
services, and some multichannel video providers are offering smaller packages of channels as part of their streaming and linear television programming packages. In addition, certain online entities may stream our broadcast television content online
without our consent and without paying any compensation to us. As a result, there can be no assurance that any of our distribution agreements will be renewed in the future on acceptable terms, or at all. The loss of any of these agreements, or the
renewal of these agreements on less favorable terms, could reduce our distribution revenue and the reach of our television programming and its attractiveness to advertisers, which in turn could adversely affect our cable networks, broadcast
television and filmed entertainment businesses.

We rely on network and information systems and other technologies, as well as key properties, and a
disruption, cyber attack, failure or destruction of such networks, systems, technologies or properties may disrupt our businesses.

Network and information systems and other technologies, including those related to our network management, customer service operations and
programming delivery, are critical to our business activities. Network and information systems-related events, including those caused by us or by third parties, such as computer hackings, cyber attacks, computer viruses, worms or other destructive
or disruptive software, process breakdowns, denial of service attacks, malicious social engineering or other malicious activities, or any combination of the foregoing, or power outages, natural disasters, infectious disease outbreaks, terrorist
attacks or other similar events, could result in a degradation or disruption of our services, excessive call volume to call centers, a reduction in demand for our theme parks or damage to our equipment, data, properties and reputation. These events
also could result in large expenditures to repair or replace the damaged properties, networks or information systems or to protect them from similar events in the future, and any such events could have an adverse effect on our results of operations.

In addition, we may obtain certain confidential, proprietary and personal information about our customers, personnel and vendors, and
may provide this information to third parties, in connection with our business. While we obtain assurances that these third parties will protect this information, there is a risk that this information may be compromised. Any security breaches, such
as misappropriation, misuse, leakage, falsification or accidental release or loss of information maintained in our information technology systems, including customer, personnel and vendor data, could damage our reputation and require us to expend
significant capital and other resources to remedy any such security breach, and could cause regulators to impose fines or other remedies for failure to comply with relevant customer privacy rules.

The risk of these systems-related events and security breaches occurring continues to intensify in many lines of business, and our lines of
business may be at a disproportionately heightened risk of these events occurring, due to the nature of our businesses and the fact that we maintain certain information necessary to conduct our business in digital form stored on cloud servers. In
the ordinary course of our business, there are frequent attempts to cause such systems-related events and security breaches, and we have experienced minor systems-related events that, to date, have not resulted in any significant degradation or
disruption to our network or information systems or our services or operations. While we develop and maintain systems, and operate a comprehensive security program, seeking to prevent systems-related events and security breaches from occurring, the
development, maintenance and operation of these systems and programs is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become more sophisticated. Despite any efforts to prevent
these events and security breaches, there can be no assurance that they will not occur in the future or will not have an adverse effect on our businesses. Moreover, the amount and scope of insurance we maintain against losses resulting from any such
events or security breaches likely would not be sufficient to cover our losses or otherwise adequately compensate us for any disruptions to our business that may result, and the occurrence of any such events or security breaches could have an
adverse effect on our business.

We may be unable to obtain necessary hardware, software and operational support.

We depend on third-party vendors to supply us with a significant amount of the hardware, software and operational support necessary to provide
certain of our services. Some of these vendors represent our primary source of supply or grant us the right to incorporate their intellectual property into some of our hardware and software products. While we actively monitor the operations and
financial condition of key vendors in an attempt to detect any potential difficulties, there can be no assurance that we would timely identify any operating or financial difficulties associated with these vendors or that we could effectively
mitigate our risks with respect to any such difficulties. If any of these vendors experience operating or financial difficulties, if our demand exceeds their capacity or if they are otherwise unable to meet our specifications or provide the

equipment or services we need in a timely manner or at reasonable prices, our ability to provide some services may be adversely affected.

Weak economic conditions may have a negative impact on our businesses.

A substantial portion of our revenue comes from customers whose spending patterns may be affected by prevailing economic conditions. Weak economic
conditions could adversely affect demand for any of our products and services and have a negative impact on our results of operations. For example, customers may reduce the level of cable services to which they subscribe, or may discontinue
subscribing to one or more of our cable services. This risk may be increased by the expanded availability of free or lower cost competitive services, such as subscription video on demand services, or substitute services for our high-speed Internet
and voice services, such as mobile phones, smartphones and Wi-Fi networks. Weak economic conditions also may have a negative impact on our advertising revenue, the performance of our films and home
entertainment releases, and attendance and spending in our theme parks. Weak economic conditions and turmoil in the global financial markets may also impair the ability of third parties to satisfy their obligations to us, and any disruption in the
global financial markets may affect our ability to obtain financing or refinance any existing debt on acceptable terms.

Our
businesses depend on using and protecting certain intellectual property rights and on not infringing the intellectual property rights of others.

We rely on our intellectual property, such as patents, copyrights, trademarks and trade secrets, as well as licenses and other agreements with our vendors and other third parties, to use various technologies,
conduct our operations and sell our products and services. Legal challenges to our intellectual property rights and claims of intellectual property infringement by third parties could require that we enter into royalty or licensing agreements on
unfavorable terms, incur substantial monetary liability, or be enjoined preliminarily or permanently from further use of the intellectual property in question or from the continuation of our businesses as currently conducted. We may need to change
our business practices if any of these events occur, which may limit our ability to compete effectively and could have an adverse effect on our results of operations. Even if we believe any such challenges or claims are without merit, they can be
time-consuming and costly to defend and divert managements attention and resources away from our businesses. Moreover, if we are unable to obtain or continue to obtain licenses from our vendors and other third parties on reasonable terms, our
businesses could be adversely affected.

In addition, intellectual property constitutes a significant part of the value of
NBCUniversals businesses, and its success is highly dependent on protecting the intellectual property rights of the content it creates or acquires against third-party misappropriation, reproduction or infringement. The unauthorized
reproduction, distribution or display of copyrighted material negatively affects our ability to generate revenue from the legitimate sale of our content, as well as from the sale of advertising in connection with our content, and increases our costs
due to our active enforcement of our intellectual property rights.

Piracy and other unauthorized uses of content are made easier, and
the enforcement of intellectual property rights more challenging, by technological advances that allow the conversion of programming, films and other content into digital formats, which facilitates the creation, transmission and sharing of
high-quality unauthorized copies. In particular, piracy of programming and films through unauthorized distribution on DVDs, peer-to-peer computer networks and other
platforms continues to present challenges for our cable networks, broadcast television and filmed entertainment businesses. While piracy is a challenge in the United States, it is particularly prevalent in many parts of the world that lack developed
copyright laws, effective enforcement of copyright laws and technical protective measures like those in effect in the United States. If any U.S. or international laws intended to combat piracy and protect intellectual property rights are repealed or
weakened or are not adequately enforced, or if the legal system fails to adapt to new technologies that facilitate piracy, we may be unable to effectively protect our rights, the value of our intellectual property may

be negatively impacted and our costs of enforcing our rights may increase. See Item 1: Business and refer to the Legislation and Regulation  Other Areas of Regulation 
Intellectual Property discussion for additional information.

Acquisitions and other strategic initiatives present many risks,
and we may not realize the financial and strategic goals that we had contemplated.

From time to time, we make acquisitions and
investments and may pursue other strategic initiatives, including, for example, with respect to our wireless strategy. In connection with such acquisitions and strategic initiatives, we may incur unanticipated expenses, fail to realize anticipated
benefits, have difficulty incorporating an acquired or new line of business, disrupt relationships with current and new employees, customers and vendors, incur significant debt, or have to delay or not proceed with announced transactions or
initiatives. For example, our launch of a wireless phone service in 2017 using virtual network operator rights from a third party will have success-based working capital requirements, primarily associated with the procurement of handsets and other
equipment, as we launch the service, which could have negative effects on our cash flows. Additionally, regulatory agencies, such as the FCC or DOJ, may impose restrictions on the operation of our businesses as a result of our seeking regulatory
approvals for any significant acquisitions and strategic initiatives, or may dissuade us from pursing certain transactions. The occurrence of any of these events could have an adverse effect on our businesses.

Many of NBCUniversals employees, including writers, directors, actors, technical and production personnel and others, as well
as some of our on-air and creative talent employees, are covered by collective bargaining agreements or works councils. Most of NBCUniversals collective bargaining agreements are industry-wide
agreements, and we may lack practical control over the negotiations and terms of the agreements. If we are unable to reach agreement with a labor union before the expiration of a collective bargaining agreement, our employees who were covered by
that agreement may have a right to strike or take other actions that could adversely affect us, which could disrupt our operations and reduce our revenue, and the resolution of any disputes may increase our costs. There can be no assurance that we
will renew our collective bargaining agreements as they expire or that we can renew them on favorable terms or without any work stoppages.

In addition, our cable networks and broadcast television networks have programming rights agreements of varying scope and duration with various sports organizations to broadcast and produce sporting events,
including certain NFL, NHL, NBA and MLB games. Labor disputes in these and other sports organizations could have an adverse effect on our businesses.

The loss of key management personnel or popular on-air and creative talent could have an adverse effect on our businesses.

We rely on certain key management personnel in the operation of our businesses. While we maintain long-term and emergency transition plans for key
management personnel and believe we could either identify internal candidates or attract outside candidates to fill any vacancy created by the loss of any key management personnel, the loss of one or more of our key management personnel could have a
negative impact on our businesses. In addition, our cable networks, broadcast television and filmed entertainment businesses depend on the abilities and expertise of our on-air and creative talent. If we fail
to retain our on-air or creative talent, if the costs to retain such talent increase materially, if we need to make significant termination payments, or if these individuals lose their current appeal, our
businesses could be adversely affected.

We face risks relating to doing business internationally that could adversely affect our
businesses.

slowdown; currency exchange rate fluctuations and inflationary pressures; the requirements of local laws and customs relating to the publication and distribution of content and the display and
sale of advertising; import or export restrictions and changes in trade regulations; difficulties in developing, staffing and managing foreign operations; issues related to occupational safety and adherence to diverse local labor laws and
regulations; and potentially adverse tax developments. In addition, doing business internationally subjects us to risks relating to political or social unrest, corruption and government regulation, including U.S. laws such as the Foreign Corrupt
Practices Act, that impose stringent requirements on how we conduct our foreign operations. If any of these events occur, our businesses may be adversely affected.

Our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEO has considerable influence over our company
through his beneficial ownership of our Class B common stock.

Our Class B common stock has a
nondilutable 33 1/3% of
the combined voting power of our Class A and Class B common stock. This nondilutable voting power is subject to proportional decrease to the extent the number of shares of Class B common stock is reduced below 9,444,375, which was the
number of shares of Class B common stock outstanding on the date of our 2002 acquisition of AT&T Corp.s cable business, subject to adjustment in specified situations. Stock dividends payable on the Class B common stock in the
form of Class B or Class A common stock do not decrease the nondilutable voting power of the Class B common stock. The Class B common stock also has separate approval rights over several potentially material transactions, even if
they are approved by our Board of Directors or by our other shareholders and even if they might be in the best interests of our other shareholders. These potentially material transactions include mergers or consolidations involving Comcast
Corporation, transactions (such as a sale of all or substantially all of our assets) or issuances of securities that require shareholder approval, transactions that result in any person or group owning shares representing more than 10% of the
combined voting power of the resulting or surviving corporation, issuances of Class B common stock or securities exercisable or convertible into Class B common stock, and amendments to our articles of incorporation or by-laws that would limit the rights of holders of our Class B common stock. Brian L. Roberts, our chairman and CEO, beneficially owns all of the outstanding shares of our Class B common stock and,
accordingly, has considerable influence over our company and the potential ability to transfer effective control by selling the Class B common stock, which could be at a premium.

We believe that substantially all of our physical assets were in good operating condition as of December 31, 2016. Our corporate headquarters and Cable Communications segment headquarters are located in
Philadelphia, Pennsylvania at One Comcast Center. We own an 80% interest in the entity whose primary asset is One Comcast Center. In addition, we own an 80% interest in an entity that is currently constructing the Comcast Technology Center, which is
adjacent to One Comcast Center. We also lease locations for numerous business offices, warehouses and properties housing divisional information technology operations throughout the United States.

Our signal reception sites, which consist primarily
of antenna towers and headends, and our microwave facilities are located on owned and leased parcels of land, and we own or lease space on the towers on which certain of our equipment is located. We own most of our service vehicles.

Our high-speed Internet network consists of fiber-optic cables owned or leased by us and related equipment. We also operate national and regional
data centers with equipment that is used to provide services, such as email and web services, to our high-speed Internet and voice customers, as well as cloud services to our video customers. In addition, we maintain network operations centers with
equipment necessary to monitor and manage the status of our services and network.

We own or lease buildings throughout the country that
contain customer service call centers, customer service retail centers, warehouses and administrative space. We also own a building that houses our digital media center. The digital media center contains equipment that we own or lease, including
equipment related to network origination, video transmission via satellite and terrestrial fiber-optics, broadcast studios, post-production services and interactive television services.

NBCUniversal Segments

NBCUniversals corporate headquarters are located in New York City at 30 Rockefeller Plaza. NBCUniversal owns the space it occupies at 30
Rockefeller Plaza. We also own or lease offices, studios, production facilities, screening rooms, retail operations, warehouse space, satellite transmission receiving facilities and data centers in numerous locations in the United States and around
the world, including property for our owned local broadcast television stations. In addition, we own theme parks and related facilities in Orlando, Florida and Hollywood, California, as well as a 51% interest in the theme park and related facilities
in Osaka, Japan.

The Wells Fargo Center, a large,
multipurpose arena in Philadelphia, Pennsylvania that we own, was the principal physical operating asset of our other businesses as of December 31, 2016.

Item 3: Legal Proceedings

Refer to Note 16 to
Comcasts consolidated financial statements included in this Annual Report on Form 10-K for a discussion of recent developments related to our legal proceedings.

NBCUniversal is subject to legal proceedings and claims that arise in the ordinary course of its business and it does not expect the final
disposition of these matters to have a material adverse effect on its results of operations, cash flows or financial condition, although any such matters could be time-consuming and costly and could injure its reputation.

Comcasts Class A common stock is listed on the NASDAQ Global Select Market under the symbol CMCSA. There is no
established public trading market for Comcasts Class B common stock. The Class B common stock can be converted, on a share for share basis, into Class A common stock.

On January 24, 2017, our Board of Directors approved a
two-for-one stock split in the form of a 100% dividend payable on February 17, 2017 to shareholders of record as of the close of business on February 8, 2017.
As the common stock is not yet trading on a post-split basis, all share and per-share amounts are presented on a pre-split basis.

Dividends Declared

2016

2015

Month Declared:

Dividend Per Share

Month Declared:

Dividend Per Share

February

$

0.275

February

$

0.25

May

$

0.275

May

$

0.25

July

$

0.275

July

$

0.25

October (paid in January 2017)

$

0.275

October (paid in January 2016)

$

0.25

Total

$

1.10

Total

$

1.00

We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of
Directors. In January 2017, our Board of Directors approved a 15% increase in our dividend to $1.26 per share on an annualized, pre-split basis, or $0.63 per share on an annualized, post-split basis. In
addition, the Board of Directors approved our first quarter dividend of $0.1575 a share on a post-split basis to be paid in April 2017.

Holders of Class A common stock in the aggregate hold 66 2/3% of the voting power of our common stock. The number of votes that each share of Class A common stock has at any given time
depends on the number of shares of Class A common stock and Class B common stock then outstanding. The Class B common stock has a
33 1/3% nondilutable voting interest, and each share of Class B common stock has 15 votes per share. Mr. Brian L. Roberts beneficially owns all outstanding shares of Class B common stock. Generally,
including as to the election of directors, holders of Class A common stock and Class B common stock vote as one class except where class voting is required by law.

Record holders as of December 31, 2016 are presented in the table below.

In December 2015, our Board of Directors increased our share repurchase program authorization to $10 billion, and in January 2017, it increased the
authorization to $12 billion, which does not have an expiration date.

The total number of shares purchased
during 2016 includes 36,590 shares received in the administration of employee share-based compensation plans.

Under our share
repurchase program authorization, we may repurchase shares in the open market or in private transactions. We expect to repurchase $5.0 billion of our Class A common stock during 2017, subject to market conditions.

Issuance of Equity Securities

In December 2016, we issued 356,635 shares of our Class A common stock to an institutional accredited investor in connection with an advance on future services in a transaction exempt from registration under
the Securities Act of 1933, as amended, in accordance with Section 4(a)(2) thereof.

Comcast Common Stock Sales Price Table

The following table sets
forth, for the indicated periods, the high and low sales prices of Comcasts Class A and Class A Special common stock.

Class A

Class A Special(a)

High

Low

High

Low

2016

First Quarter

$

61.37

$

52.34

$



$



Second Quarter

$

65.42

$

59.62

$



$



Third Quarter

$

68.36

$

64.27

$



$



Fourth Quarter

$

71.32

$

60.04

$



$



2015

First Quarter

$

60.70

$

52.45

$

60.19

$

52.23

Second Quarter

$

61.64

$

56.05

$

61.38

$

55.74

Third Quarter

$

64.99

$

50.00

$

64.70

$

51.26

Fourth Quarter(a)

$

63.38

$

55.39

$

63.48

$

56.88

(a)

The high and low sales price of Comcasts Class A Special common stock reflects the prices until December 11, 2015, when each issued share of
Class A Special common stock was reclassified into one share of Class A common stock (see Note 12 to Comcasts consolidated financial statements).

The following graph compares the annual percentage change in the cumulative total shareholder return on Comcasts Class A common stock
during the five years ended December 31, 2016 with the cumulative total returns on the Standard & Poors 500 Stock Index and with a select peer group consisting of us and other companies engaged in the cable, communications and
media industries. This peer group (the new peer group index) consists of our common stock, DISH Network Corporation (Class A), Charter Communications, Inc., AT&T Inc., Verizon Communications Inc., CenturyLink, Inc., and Sprint
Corporation (the transmission and distribution subgroup); and Time Warner Inc., Walt Disney Company, Viacom Inc. (Class B), Twenty-First Century Fox, Inc. (Class A), and CBS Corporation (Class B) (the media subgroup). The new
peer group index was created as a result of merger and acquisition activity that impacted our prior peer group index, which had consisted of our common stock as well as Cablevision Systems Corporation (Class A) (included through June 21, 2016,
the date of acquisition by Altice NV), DISH Network Corporation (Class A), DirecTV Inc. (included through July 24, 2015, the date of acquisition by AT&T Inc.), Time Warner Cable Inc. (included through May 18, 2016, the date of
acquisition by Charter Communications, Inc.) (the cable subgroup); and Time Warner Inc., Walt Disney Company, Viacom Inc. (Class B), Twenty-First Century Fox, Inc. (Class A), and CBS Corporation (Class B) (the media
subgroup). The peer groups are constructed as composite peer groups in which the transmission and distribution subgroup and the cable subgroup are weighted 61% and the media subgroup is weighted 39% based on the respective revenue of our Cable
Communications and NBCUniversal segments. The comparison assumes $100 was invested on December 31, 2011 in our Class A common stock and in each of the following indices and assumes the reinvestment of dividends.

Comparison of 5 Year Cumulative Total Return

2012

2013

2014

2015

2016

Comcast Class A

$

160

$

226

$

256

$

253

$

316

S&P 500 Stock Index

$

116

$

153

$

174

$

176

$

197

Prior Peer Group Index

$

144

$

211

$

244

$

242

$

284

New Peer Group Index

$

130

$

170

$

180

$

178

$

220

NBCUniversal

NBCUniversal is a wholly owned subsidiary of NBCUniversal Holdings and there is no market for its equity securities.

Basic earnings per common share attributable to Comcast Corporation shareholders(b)

3.61

3.28

3.24

2.60

2.32

Diluted earnings per common share attributable to Comcast Corporation shareholders(b)

3.57

3.24

3.20

2.56

2.28

Dividends declared per common share(b)

1.10

1.00

0.90

0.78

0.65

Balance Sheet Data (at year end)

Total assets

$

180,500

$

166,574

$

159,186

$

158,672

$

164,837

Total debt, including current portion

61,046

52,621

48,081

47,706

40,323

Comcast Corporation shareholders equity

53,943

52,269

52,711

50,694

49,356

Statement of Cash Flows Data

Net cash provided by (used in):

Operating activities

19,240

18,778

16,945

14,160

14,854

Investing activities

(18,385

)

(11,964

)

(8,733

)

(9,514

)

(1,486

)

Financing activities

151

(8,429

)

(6,020

)

(13,879

)

(4,037

)

(a)

For 2016, 2015 and 2014, refer to Item 7: Managements Discussion and Analysis of Financial Condition and Results of Operations included in this
Annual Report on Form 10-K for a discussion of the effects of items impacting net income attributable to Comcast Corporation. In 2016, 2015, 2014, 2013 and 2012, net income attributable to Comcast Corporation
is stated after deducting net income attributable to noncontrolling interests of $350 million, $250 million, $212 million, $319 million and $1.7 billion, respectively. The reduction in net income attributable to
noncontrolling interests in 2013 was primarily due to our acquisition of General Electric Companys remaining interest in NBCUniversal.

Item 7: Managements Discussion and Analysis of Financial
Condition and Results of Operations

Introduction and Overview

We are a global media and technology
company with two primary businesses, Comcast Cable and NBCUniversal. We present our operations for Comcast Cable in one reportable business segment, referred to as Cable Communications, and our operations for NBCUniversal in four reportable business
segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks (collectively, the NBCUniversal segments).

The following provides an overview of our businesses.

2016 Consolidated Operating Results by Segment(a)

(a)

Excludes the results of NBCUniversal Headquarters and Other, Corporate and Other, and eliminations.

Cable Communications Segment

Comcast Cable
is one of the nations largest providers of video, high-speed Internet and voice services (cable services) to residential customers under the XFINITY brand, and we also provide these and other services to business customers. As of
December 31, 2016, our cable systems had 28.6 million total customer relationships, of which 26.5 million were residential customer relationships; served 22.5 million video customers, 24.7 million high-speed Internet
customers and 11.7 million voice customers; and passed more than 56 million homes and businesses.

Our Cable Communications
segment generates revenue primarily from residential and business customers subscribing to our cable services, which we market individually and as bundled services, and from the sale of advertising. Customers are typically billed in advance on a
monthly basis based on the services and features

they receive and the type of equipment they use. The majority of our residential cable services customers are not subject to minimum-term contracts for their services, while substantially all of
our business customers are. Minimum-term contracts are typically 2 years in length for residential customers and typically range from 2 to 5 years for business services customers. Customers with minimum-term contracts may only discontinue service in
accordance with the terms of their contracts, which typically include an early termination fee.

NBCUniversal Segments

NBCUniversal is one of the worlds leading media and entertainment companies that develops, produces and distributes entertainment, news and
information, sports, and other content for global audiences, and owns and operates theme parks worldwide.

Our Cable Networks segment generates revenue primarily from the distribution and licensing of its programming and from the sale of advertising on
its networks.

Broadcast Television

Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast television networks, our NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network,
our broadcast television studio production operations, and related digital media properties.

Our Broadcast Television segment generates
revenue primarily from the sale of advertising on its networks, from the licensing of its programming, and from fees received under retransmission consent agreements and associated fees received from
NBC-affiliated local broadcast television stations.

Filmed Entertainment

Our Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment worldwide, and it also develops,
produces and licenses live stage plays. Our films are produced primarily under the Universal Pictures, Illumination and Focus Features names, and in August 2016, we acquired DreamWorks Animation. DreamWorks Animation creates animated feature films,
television series and specials, live entertainment and related consumer products.

Our Filmed Entertainment segment generates revenue
primarily from the worldwide distribution of our owned and acquired films for exhibition in movie theaters and from the licensing and sale of our owned and acquired films.

Theme Parks

Our Theme Parks segment consists primarily of our Universal theme parks
in Orlando, Florida and Hollywood, California and our 51% interest in the Universal Studios theme park in Osaka, Japan (Universal Studios Japan), which we acquired in November 2015. In addition, along with a consortium of Chinese
state-owned companies, we are developing a theme park in China.

Our other business interests consist primarily of the operations of Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena
management-related businesses.

We currently anticipate launching a Comcast-branded wireless phone service in 2017 using our virtual
network operator rights to provide the service over a third partys wireless network, although we are still evaluating the parameters of the anticipated offering. A wireless phone service will have success-based working capital requirements,
primarily associated with the procurement of handsets and other equipment, as we launch the new service.

2016 Developments

The following are the more significant developments in our businesses during 2016:

Cable Communications Segment



An increase in revenue of 6.6% to $50.0 billion and an increase in operating income before depreciation and amortization of 5.6% to $20.1 billion



A decrease in operating margin to 40.2% primarily due to higher programming expenses, which were partially offset by increases in high-speed Internet, video
and business services revenue



Investments to improve the customer experience, including by hiring additional personnel and developing and deploying various technology and software tools



An increase in capital expenditures of 7.9% to $7.6 billion primarily due to:



an increased investment in line extensions, primarily for the expansion of our business services



an increased investment in scalable infrastructure to increase network capacity



the continued deployment of wireless gateways



the continued deployment of our X1 platform, which is now available in all of the markets in which we operate, and our cloud DVR technology, which is now
available in substantially all of our markets

NBCUniversal Segments



An increase in total NBCUniversal revenue of 11.0% to $31.6 billion; excluding $1.6 billion of revenue associated with our broadcast of the Rio
Olympics in August 2016, as well as $376 million of revenue associated with our broadcast of the Super Bowl in February 2015, total NBCUniversal revenue increased 6.7%



An increase in total NBCUniversal operating income before depreciation and amortization of 13.8% to $7.2 billion



An increase in Cable Networks segment revenue of 8.7%, including $432 million associated with our broadcast of the 2016 Rio Olympics



An increase in Broadcast Television segment revenue of 19.0%, including $1.2 billion associated with our broadcast of the 2016 Rio Olympics



The acquisition of DreamWorks Animation for $3.8 billion in our Filmed Entertainment segment

An increase in Theme Parks segment revenue of 12.7% on a pro forma combined basis to include Universal Studios Japan

Corporate and Other



The announcement that we anticipate launching a Comcast-branded wireless phone service in 2017 using our virtual network operator rights to provide the
service over a third partys wireless network

Competition

The results of operations of our reportable business segments are affected by competition, as all of our businesses operate in intensely competitive, consumer-driven and rapidly changing environments and compete
with a growing number of companies that provide a broad range of communications products and services and entertainment, news and information content to consumers.

For additional information on the competition our businesses face, see Item 1: Business and refer to the Competition discussion within that section and see Item 1A: Risk Factors and refer to the risk
factors within that section entitled Our businesses currently face a wide range of competition, and our businesses and results of operations could be adversely affected if we do not compete effectively and Changes in consumer
behavior driven by new technologies and distribution platforms for viewing content may adversely affect our businesses and challenge existing business models.

Seasonality and Cyclicality

Each of our businesses is subject to seasonal and cyclical
variations. In our Cable Communications segment, our results are impacted by the seasonal nature of customers receiving our cable services in college and vacation markets. This generally results in a reduction in net customer additions in the second
quarter and an increase in net customer additions in the third and fourth quarters of each year.

Revenue in our Cable Communications,
Cable Networks and Broadcast Television segments is subject to cyclical advertising patterns and changes in viewership levels. Advertising revenue in the U.S. is generally higher in the second and fourth quarters of each year, due in part to
increases in consumer advertising in the spring and in the period leading up to and including the holiday season. Advertising revenue in the U.S. is also cyclical, with a benefit in even-numbered years due to advertising related to candidates
running for political office and issue-oriented advertising. Revenue in our Cable Networks and Broadcast Television segments fluctuates depending on the timing of when our programming is aired, which typically results in higher advertising revenue
in the second and fourth quarters of each year. Our revenue and operating costs and expenses, excluding depreciation and amortization (operating costs and expenses) are cyclical as a result of our periodic broadcasts of major sporting
events, such as the Olympic Games, which affect our Cable Networks and Broadcast Television segments, and the Super Bowl, which affects our Broadcast Television segment. Our advertising revenue increases in the period of these broadcasts due to
increased demand for advertising time, and our operating costs and expenses also increase as a result of our production costs and the amortization of the related rights fees.

Revenue in our Filmed Entertainment segment fluctuates due to the timing of the release of films in movie theaters, on standard-definition digital video discs and Blu-ray
discs (together, DVDs) and through various other distribution platforms. Release dates are determined by several factors, including competition and the timing of vacation and holiday periods. As a result, revenue tends to be seasonal,
with increases experienced each year during the summer months and around the holiday season. Revenue in our Cable Networks, Broadcast Television and Filmed Entertainment segments also fluctuates due to the timing of when our content is made
available to licensees.

Revenue in our Theme Parks segment fluctuates with changes in theme park attendance that result from
the seasonal nature of vacation travel and weather variations, local entertainment offerings and the opening of new attractions as well as with changes in currency exchange rates. Our theme parks generally experience peak attendance during the
spring holiday period, the summer months when schools are closed and the holiday season.

All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

Consolidated Revenue

The following graph
illustrates the contributions to the increases in consolidated revenue made by our Cable Communications and NBCUniversal segments, as well as by Corporate and Other activities including eliminations.

Our larger film slate in our Filmed Entertainment segment, which led to an increase in revenue of $2.3 billion, and our broadcast of the 2015 Super Bowl,
which generated $376 million of revenue, both of which were reported in our NBCUniversal segments

Revenue for our segments is discussed separately below under the heading
Segment Operating Results. Revenue for our other businesses is discussed separately under the heading Corporate and Other Results of Operations.

Consolidated Costs and Expenses

The following graph illustrates the contributions to the
increases in consolidated operating costs and expenses made by our Cable Communications and NBCUniversal segments, as well as by Corporate and Other activities including eliminations.

The primary drivers of the changes in operating costs and expenses were as follows:

2016



An increase in programming expenses in our Cable Communications segment



Our broadcast of the 2016 Rio Olympics, which was reported in our NBCUniversal segments

An increase in programming expenses in our Cable Communications segment



Our larger film slate and our broadcast of the 2015 Super Bowl, both of which were reported in our NBCUniversal segments



Transaction-related costs associated with the Time Warner Cable merger and the related divestiture transactions of $178 million, which were reported in
Corporate and Other activities. In April 2015, we and Time Warner Cable Inc. terminated our planned merger and, as a result, we terminated our related agreement with Charter Communications, Inc. to spin off, exchange and sell certain cable systems

Operating costs and expenses for our segments is discussed separately below under
the heading Segment Operating Results. Operating costs and expenses for our other businesses is discussed separately below under the heading Corporate and Other Results of Operations.

Consolidated Depreciation and Amortization

Year ended December 31 (in millions)

2016

2015

2014

% Change2015 to 2016

% Change2014 to 2015

Cable Communications

$

7,670

$

7,051

$

6,436

8.8

%

9.6

%

NBCUniversal

1,805

1,539

1,495

17.3

2.9

Corporate and Other

83

90

88

(7.3

)

1.3

Comcast Consolidated

$

9,558

$

8,680

$

8,019

10.1

%

8.2

%

Consolidated depreciation and amortization expense increased in 2016 and 2015 primarily due to increases in capital
expenditures, as well as expenditures for software, in our Cable Communications segment in recent years. We continue to invest to increase our network capacity and in customer premise equipment, primarily for our X1 platform and cloud DVR technology
and for wireless gateways. In addition, because these assets generally have shorter estimated useful lives, our depreciation expenses have increased and we expect this will continue in 2017. NBCUniversal depreciation and amortization expense
also increased due to the acquisition of the 51% interest in Universal Studios Japan in November 2015 and our investments in new attractions in the Theme Parks segment.

Segment Operating Results

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use
operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses from the sale of assets, if any, as the measure of profit or loss for our operating segments. This
measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is
unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating
segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with that of other
companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. Because we use operating income (loss) before depreciation and amortization to measure our segment profit or loss, we
reconcile it to operating income, the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP), in the business segment footnote to our

consolidated financial statements (see Note 17 to Comcasts consolidated financial statements and Note 16 to NBCUniversals consolidated financial statements). This measure should not
be considered a substitute for operating income (loss), net income (loss) attributable to Comcast Corporation or NBCUniversal, net cash provided by operating activities, or other measures of performance or liquidity we have reported in accordance
with GAAP.

The revenue and operating costs and expenses associated with our broadcasts of the 2016 Rio Olympics and the Sochi Olympics
in February 2014 were reported in our Cable Networks and Broadcast Television segments. The revenue and operating costs and expenses associated with our broadcast of the 2015 Super Bowl were reported in our Broadcast Television segment.

We have adjusted prior period segment operating results to reflect certain changes in our management reporting presentation. See Note 17 to
Comcasts consolidated financial statements for additional information on these changes.

Customer metrics include residential and business customers and are presented based on actual amounts. Minor
differences may exist due to rounding.

(a)

Customer relationships represent the number of residential and business customers that subscribe to at least one of our cable services. Single product, double
product and triple product customers represent customers that subscribe to one, two or three of our cable services, respectively.

Video revenue increased 3.9% and 3.6% in 2016 and 2015, respectively. The increases in revenue in both
years were primarily due to rate adjustments and an increase in the number of residential customers subscribing to additional services such as premium channels and advanced services, which accounted for increases in revenue of 3.9% and 4.5% in 2016
and 2015, respectively. As of December 31, 2016, 14.8 million customers subscribed to at least one of our HD or DVR advanced services compared to 13.9 million customers and 13.0 million customers as of December 31, 2015 and
2014, respectively. Net additional video customers increased in 2016 primarily due to reduced customer churn, which we believe is a result of our continued deployment of our X1 platform as well as improvements we have made in the customer
experience. The increase in revenue in 2015 was partially offset by a decrease in the number of residential video customers, which was primarily due to competitive pressures and the impact of rate adjustments.

As of December 31, 2016, 39.9% of the homes and businesses in the areas we serve subscribed to our video services, compared to 40.1% and 40.9%
as of December 31, 2015 and 2014, respectively. We have in the past, and may in the future, experience declines in the number of residential video customers due to competitive pressures and the impact of rate adjustments.

High-Speed Internet

We offer
high-speed Internet services with downstream speeds from a range of up to 10 Mbps to fiber-based speeds up to 2 Gbps. We are actively deploying wireless gateways throughout our footprint, which combine a customers wireless router, cable modem
and voice adapter, to improve the performance of multiple IP-enabled devices used at the same time within the home, provide faster Internet speeds and create an in-homeWi-Fi network. We are continuing to expand our network of residential, outdoor and business Wi-Fi hotspots to allow most of our high-speed Internet customers to access our
high-speed Internet services inside and outside the home. As of December 31, 2016, there were approximately 15.8 million of these hotspots.

High-speed Internet revenue increased 8.5% and 10.2% in 2016 and 2015, respectively. Increases in the number of residential customers receiving our high-speed Internet services accounted for increases in revenue of
5.8% in both 2016 and 2015. The remaining increases in revenue in both 2016 and 2015 were primarily due to increases in the number of customers receiving higher levels of service and the impact of rate adjustments.

As of December 31, 2016, 43.8% of the homes and businesses in the areas we serve subscribed to our high-speed Internet services, compared to
41.9% and 40.2% as of December 31, 2015 and 2014, respectively. Our customer base continues to grow as consumers choose our high-speed Internet service and seek higher-speed offerings.

Voice

We offer voice services that provide local and long-distance calling and other
related features.

Voice revenue decreased 1.9% and 1.7% in 2016 and 2015, respectively. While the number of residential customers
receiving voice services through our discounted bundled service offerings increased in both years, revenue was negatively impacted by the allocation of voice revenue for our customers who receive bundled services. The amount allocated to voice
revenue in the rate charged for bundled services decreased in both years because video and high-speed Internet rates increased while voice rates remained relatively flat.

As of December 31, 2016, 20.7% of the homes and businesses in the areas we serve subscribed to our voice services, compared to 20.6% and 20.5% as of December 31, 2015 and 2014, respectively.

We offer our cable services to small and medium-sized businesses and to large enterprises with multiple locations. We offer Ethernet network services that connect multiple
locations and provide higher downstream and upstream speed options to medium-sized businesses and large enterprises. We also provide cellular backhaul services to mobile network operators to help those
customers manage network bandwidth.

Business services revenue increased 16.1% and 20.0% in 2016 and 2015, respectively. The increase in
2016 was primarily due to an increase in the number of small business customers, as well as continued growth in our medium-sized business services, including Ethernet network and advanced voice services. The
increase in 2015 was primarily due to an increase in the number of small business customers receiving our high-speed Internet and voice services and rate adjustments. In 2016, 2015 and 2014, our small business customers represented more than 70% of
total business services revenue. We believe the increases in the number of business customers were primarily the result of our efforts to gain market share from competitors by offering competitive services and pricing, although the rate of growth in
the number of our small business customers may slow as the business matures.

Advertising

Our Cable Communications segment also sells advertising. As part of our distribution agreements with cable networks, we generally receive an
allocation of scheduled advertising time on cable networks that we sell through our advertising business, Spotlight, to local, regional and national advertisers. In most cases, the available advertising units are sold by our sales force. In some
cases, we work with representation firms as an extension of our sales force to sell a portion of the advertising units allocated to us. We also represent the advertising sales efforts of other multichannel video providers in some markets. In
addition, we generate revenue from the sale of advertising online and on our On Demand service. Advertising revenue is affected by the strength of the advertising market and general economic conditions.

Advertising revenue increased 9.6% in 2016 primarily due to an increase in political advertising revenue. Advertising revenue decreased 3.8% in
2015 primarily due to a decrease in political advertising revenue. Excluding the impact of political advertising revenue, advertising revenue increased slightly in 2016 and 3.0% in 2015.

In 2016, 5% of our Cable Communications segment advertising revenue was generated from our NBCUniversal segments, compared to 6% and 5% in 2015 and
2014, respectively. These amounts are eliminated in our consolidated financial statements but are included in the amounts presented above.

Other

Other revenue primarily includes revenue related to cable franchise and other
regulatory fees. We also receive revenue related to fees from other services, such as our home security and automation services. Cable franchise and other regulatory fees represent the fees we are required to pay to federal, state and local
authorities that we pass through to our customers. Under the terms of our cable franchise agreements, we are generally required to pay to the cable franchising authority an amount based on our gross video revenue. The changes in franchise and other
regulatory fees collected from our cable services customers are generally due to changes in the revenue to which the fees apply.

Other
revenue increased 13.8% and 11.3% in 2016 and 2015, respectively, primarily due to increases in cable franchise and other regulatory fees, revenue from our home security and automation services and revenue from other services.

Programming
expenses, which represent our most significant operating expense, are the fees we incur to provide content to our video customers. These expenses are affected by the programming license fees charged by cable networks, the fees charged for
retransmission of the signals from local broadcast television stations, the number of video customers we serve and the amount of content we provide. Programming expenses increased in 2016 and 2015 primarily due to increases in programming license
fees, including retransmission consent fees, sports programming costs and fees to secure rights for additional programming for distribution across an increasing number of platforms.

We anticipate that our programming expenses will increase at a higher growth rate in 2017, as the fees we pay will increase primarily due to the
timing of contract renewals and increases in retransmission consent fees and sports programming costs; as we provide additional content to our video customers; and as we deliver this content through an increasing number of platforms, including On
Demand, online and through our mobile apps. We believe that adding more content and delivering it on various platforms will help us to attract and retain video customers.

Technical and Product Support Expenses

Technical and product support expenses include
costs to complete service call and installation activities, as well as costs for network operations, product development, fulfillment and provisioning. Technical and product support expenses increased in 2016 and 2015 primarily due to expenses
related to the development, delivery and support of our enhanced devices and services, including our X1 platform, cloud DVR technology and wireless gateways, and continued growth in business services and home security and automation services. The
increases in both years were also due to expenses related to investments to improve the customer experience.

Customer Service Expenses

Customer service expenses include the personnel and other costs associated with handling the sale of services to customers and customer
service activity. Customer service expenses increased in 2016 and 2015 primarily due to increased support for improving the customer experience and increases in total labor costs, which reflect sales and support activities associated with the
continued deployment of our enhanced devices and services, including our X1 platform and wireless gateways, and continued growth in business services and home security and automation services. The rate of growth of our customer service expenses
decreased in 2016 primarily due to reduced call volumes.

Franchise and Other Regulatory Fees

Franchise and other regulatory fees increased in 2016 and 2015 primarily due to increases in the revenue to which the fees apply.

Advertising, Marketing and Promotion Expenses

Advertising, marketing and promotion expenses increased in 2016 and 2015 primarily due to increases in spending associated with attracting new residential and business services customers and encouraging existing
customers to add additional or higher-tier services.

Other Operating Costs and Expenses

Other operating costs and expenses increased in 2016 and 2015 primarily due to increases in costs to support our advertising sales business, as well
as increases in other administrative costs.

Our Cable Communications segment operating margin is operating income before depreciation and amortization as a percentage of revenue. The most
significant operating costs and expenses for our Cable Communications segment are the programming expenses we incur to provide content to our video customers. We expect that our programming expenses will continue to increase, which may negatively
impact our operating margin. We will attempt to mitigate increases in operating costs and expenses by growing revenue, particularly in our high-speed Internet, video and business services businesses and through cost management.

Percentage changes that are considered not meaningful are denoted with NM.

(a)

Pro forma adjustments are presented as if the acquisition of the 51% interest of Universal Studios Japan occurred on January 1, 2014. Pro forma
information does not include adjustments for transaction-related costs, costs related to integration activities, or cost savings or synergies that have been or may be achieved by the combined businesses. The pro forma amounts are primarily based on
historical results of operations, adjusted for the allocation of purchase price, and are not necessarily indicative of what our results would have been had we operated Universal Studios Japan since January 1, 2014, nor of our future results.

Distribution revenue is generated from the distribution of our cable
network programming to multichannel video providers and is affected by the number of subscribers receiving our cable networks and the fees we charge per subscriber.

Distribution revenue increased in 2016 primarily due to increases in the contractual rates charged under distribution agreements and contract renewals, as well as $298 million of revenue associated with our
broadcast of the 2016 Rio Olympics, which were partially offset by a decline in the number of subscribers at some of our cable networks. Distribution revenue increased in 2015 primarily due to increases in the contractual rates charged under
distribution agreements that were partially attributable to the premiere of NASCAR programming on the NBC Sports Network in 2015. The increases in 2015 were partially offset by a decrease in revenue from a decline in the number of subscribers at
some of our cable networks and $177 million of revenue in 2014 associated with our broadcast of the 2014 Sochi Olympics. Excluding revenue associated with our broadcasts of the 2016 Rio Olympics and the 2014 Sochi Olympics, distribution revenue
increased 5.8% and 6.5% in 2016 and 2015, respectively.

Advertising

Advertising revenue is generated from the sale of advertising units sold on our cable networks and related digital media properties. Advertising
revenue is primarily based on the price we charge for each advertising unit, which is generally based on audience ratings, the value of our viewer demographics to advertisers and the number of advertising units we can place in our cable
networks programming schedules. Advertising revenue is affected by the audience ratings of our programming, the strength of the national advertising market and general economic conditions. Audience ratings at our cable networks have declined,
which has negatively affected advertising revenue in recent years, and may continue to decline as the number of programming choices, such as subscription video on demand services, continues to increase and as more viewers use DVRs and video on
demand services to view our content outside of traditional audience ratings measurement periods.

Advertising revenue increased in 2016
primarily due to $134 million of revenue associated with our broadcast of the 2016 Rio Olympics. Also, higher prices for advertising units were offset by the impact of declining audience ratings. Advertising revenue decreased in 2015 primarily
due to $80 million of revenue in 2014 associated with our broadcast of the 2014 Sochi Olympics. In addition, the impact of declining audience ratings in 2015 was partially offset by higher prices for, and an increase in the volume of,
advertising units sold, as well as increased advertising revenue associated with the broadcast of NASCAR programming. Excluding revenue associated with our broadcasts of the 2016 Rio Olympics and the 2014 Sochi Olympics, advertising revenue
decreased slightly in 2016 and increased slightly in 2015 due to the broadcast of NASCAR programming.

Content Licensing and Other

Content licensing and other revenue is generated primarily from the licensing of our owned programming in the United States and
internationally to cable and broadcast networks and subscription video on demand services, as well as from the sale of our owned programming on DVDs and through digital distribution services such as iTunes. In addition, our cable television studio
production operations generate revenue from programming it produces for third-party networks and subscription video on demand services.

Content licensing and other revenue increased in 2016 and decreased in 2015 primarily due to the timing of content provided under our licensing
agreements.

In 2016, 2015 and 2014, 14%, 13% and 12%, respectively, of our Cable Networks segment revenue was
generated from our Cable Communications segment. These amounts are eliminated in Comcasts consolidated financial statements but are included in the amounts presented above.

Cable Networks Segment  Operating Costs and Expenses

Programming and Production Costs

Programming and production costs include the amortization of owned and acquired programming, sports rights, direct production costs,
residual and participation payments, production overhead, costs associated with the distribution of our programming to third-party networks and other distribution platforms, and on-air talent costs.

Programming and production costs increased in 2016 primarily due to our broadcast of the 2016 Rio Olympics, as well as an increase in
other sports programming rights costs. Programming and production costs increased in 2015 primarily due to our continued investment in programming, including the premiere of NASCAR programming and other sports programming rights costs. These
increases in 2015 were partially offset by costs in 2014 associated with our broadcast of the 2014 Sochi Olympics.

Other Operating and
Administrative Costs and Expenses

Other operating and administrative costs and expenses include salaries, employee benefits, rent and
other overhead expenses, and these costs increased in 2016 and 2015 primarily due to increases in employee-related costs.

Advertising,
Marketing and Promotion Expenses

Advertising, marketing and promotion expenses consist primarily of the costs associated with promoting
programming on our cable networks and related digital media properties. These expenses decreased in 2016 and increased in 2015 primarily due to increased spending on marketing in 2015 related to the launch of new programming on our cable networks.

Advertising revenue is generated from the sale of advertising units sold
on our broadcast networks, owned local television stations and related digital media properties. Advertising revenue is primarily based on the price we charge for each advertising unit, which is generally based on audience ratings and the value of
our viewer demographics to advertisers, and the number of advertising units we can place in our broadcast networks and owned local television stations programming schedules. Advertising revenue is affected by the strength of the national
and local advertising markets, general economic conditions, cyclicality related to political campaigns and issue-oriented advertising, and the success and ratings of our programming.

Advertising revenue increased in 2016 primarily due to $1.0 billion of revenue associated with our broadcast of the 2016 Rio Olympics.
Advertising revenue also increased due to higher prices for advertising units sold, the premiere of Thursday Night Football and higher political advertising, which was partially offset by revenue in 2015 associated with our broadcast of the
2015 Super Bowl and a decline in audience ratings. Advertising revenue decreased in 2015 primarily due to $730 million of revenue in 2014 associated with our broadcast of the 2014 Sochi Olympics, which was partially offset by $376 million
of revenue in 2015 associated with our broadcast of the 2015 Super Bowl. Excluding revenue associated with our broadcasts of the 2016 Rio Olympics and the 2015 Super Bowl, revenue increased 7.7% in 2016. Excluding revenue associated with our
broadcasts of the 2015 Super Bowl and the 2014 Sochi Olympics, revenue increased 4.1% in 2015 primarily due to higher prices for, and an increase in the volume of, advertising units sold.

Content Licensing

Content licensing revenue is generated from the licensing of our
owned programming in the United States and internationally to various distribution platforms, including to cable and broadcast networks, as well as to subscription video on demand services. In addition, our broadcast television studio production
operations develop and produce original content that they license to broadcast networks, cable networks and local broadcast television stations owned by us and third parties, as well as to subscription video on demand services. The production and
distribution costs related to our owned programming generally exceed the revenue generated from the initial network license, which means the subsequent licensing of our owned programming series following the initial network license is critical to
their financial success.

Content licensing revenue increased in 2016 and 2015 primarily due to the timing of content provided under our
licensing agreements.

Distribution and Other

We generate distribution and other revenue primarily from fees for retransmission consent of our owned local broadcast television stations and associated fees received from
NBC-affiliated local broadcast television stations, as well as from the sale of our owned programming on DVDs and through digital distribution services. The sale of our owned programming is driven primarily by
the popularity of our broadcast networks and programming series and therefore fluctuates based on consumer spending and acceptance. Distribution and other revenue also includes distribution revenue associated with our periodic broadcasts of the
Olympic Games.

Distribution and other revenue increased in 2016 primarily due to increases in fees recognized under our retransmission
consent agreements, as well as $140 million of distribution revenue associated with our broadcast of the 2016 Rio Olympics. Distribution and other revenue decreased in 2015 primarily due to $116 million of distribution revenue in 2014 that
was associated with our broadcast of the 2014 Sochi Olympics. The decrease was partially offset by an increase in fees recognized under our retransmission consent agreements, as well as new syndication agreements entered into in 2015.

Programming and production costs relate to content originating on our broadcast networks and owned local broadcast television stations, as well as
owned content that is licensed to third parties. These costs include the amortization of owned and acquired programming costs, sports rights, direct production costs, residual and participation payments, production overhead, costs associated with
the distribution of our programming to third-party networks and other distribution platforms, and on-air talent costs.

Programming and production costs increased in 2016 primarily due to our broadcast of the 2016 Rio Olympics, as well as our broadcast of Thursday Night Football, which were partially offset by costs in 2015
associated with our broadcast of the 2015 Super Bowl. Programming and production costs decreased in 2015 primarily due to costs in 2014 associated with our broadcast of the 2014 Sochi Olympics, which was partially offset by costs associated with our
broadcast of the 2015 Super Bowl, the timing of content provided under our licensing agreements and higher studio production costs.

Other Operating and Administrative Costs and Expenses

Other operating and administrative costs and expenses include salaries, employee benefits, rent and other overhead expenses, and these costs increased in 2016 and 2015 primarily due to increases in employee-related
costs.

Advertising, Marketing and Promotion Expenses

Advertising, marketing and promotion expenses consist primarily of the costs associated with promoting our owned and acquired television programming, as well as the marketing of DVDs and costs associated with our
related digital media properties. These expenses decreased in 2016 and increased in 2015 primarily due to increased spending on marketing in 2015 associated with our NBC primetime lineup.

Filmed Entertainment Segment Results of Operations

Year ended December 31 (in millions)

2016

2015

2014

% Change

2015 to 2016

% Change

2014 to 2015

Revenue

Theatrical

$

1,560

$

2,829

$

1,101

(44.9

)%

156.9

%

Content licensing

2,563

1,923

1,792

33.3

7.3

Home entertainment

1,254

1,801

1,457

(30.4

)

23.6

Other

983

734

658

34.1

11.5

Total revenue

6,360

7,287

5,008

(12.7

)

45.5

Operating costs and expenses

Programming and production

2,962

3,488

2,331

(15.1

)

49.6

Other operating and administrative

1,101

872

849

26.3

2.8

Advertising, marketing and promotion

1,600

1,693

1,117

(5.5

)

51.7

Total operating costs and expenses

5,663

6,053

4,297

(6.4

)

40.9

Operating income before depreciation and amortization

$

697

$

1,234

$

711

(43.5

)%

73.5

%

Filmed Entertainment Segment  Revenue

Theatrical

Theatrical revenue is generated from the worldwide theatrical release of
our owned and acquired films for exhibition in movie theaters and is significantly affected by the timing of each release and the number of films

we distribute, as well as their acceptance by audiences. Theatrical revenue is also affected by the number of exhibition screens, ticket prices, the percentage of ticket sale retention by the
exhibitors and the popularity of competing films at the time our films are released. The success of a film in movie theaters is a significant factor in determining the revenue a film is likely to generate in succeeding distribution platforms.

Theatrical revenue decreased in 2016 and increased in 2015 primarily due to the strong performance of our larger 2015 film slate,
including Furious 7, Jurassic World and Minions. The decrease in 2016 was partially offset by the strong performance of The Secret Life of Pets and Sing in 2016.

Content Licensing

Content
licensing revenue is generated primarily from the licensing of our owned and acquired films to cable, broadcast and premium networks, as well as to subscription video on demand services.

Content licensing revenue increased in 2016 and 2015 primarily due to the timing of when content was made available under licensing agreements. The
increase in 2016 was partially due to the timing of when content related to our 2015 film slate was made available under licensing agreements.

Home Entertainment

Home entertainment revenue is generated from the sale of our owned
and acquired films on DVDs to retail stores, rental kiosks and subscription by mail services, and in digital formats. Home entertainment revenue is significantly affected by the timing and number of our releases and their acceptance by consumers.
Release dates are determined by several factors, including the timing of the exhibition of a film in movie theaters, holiday periods and the timing of competitive releases. The overall DVD market continues to experience declines due to the
maturation of the standard-definition DVD format, increasing shifts in consumer behavior toward digital distribution services, and subscription rental services, all of which generate less revenue per transaction than DVD sales, as well as due to
piracy.

Home entertainment revenue decreased in 2016 and increased in 2015 primarily due to the strong performance of our 2015
releases, including Minions and Jurassic World. The decrease in 2016 was partially offset by the home entertainment sales of Jason Bourne and The Secret Life of Pets.

Other

We also generate revenue
from producing and licensing live stage plays, from distributing filmed entertainment produced by third parties, from Fandango, our movie ticketing and entertainment business, and from the sale of consumer products.

Other revenue increased in 2016 and 2015 primarily due to increases in revenue generated from Fandango.

Filmed Entertainment Segment  Operating Costs and Expenses

Programming and Production Costs

Programming and production costs include the
amortization of capitalized film production and acquisition costs, residual and participation payments, and distribution expenses. Residual payments represent amounts payable to certain of our employees who are represented by labor unions or guilds,
including freelance and temporary employees, and are based on post-theatrical revenue. Participation payments are primarily based on film performance and represent contingent consideration payable to creative talent, third parties that have entered
into cofinancing agreements with us and other parties involved in the production of a film. The costs associated with producing films have generally increased in recent years and may continue to increase in the future.

Programming and production costs decreased in 2016 and increased in 2015 primarily due to higher
amortization of film production costs in 2015 associated with our larger 2015 film slate, which included Furious 7, Jurassic World and Minions.

Other Operating and Administrative Costs and Expenses

Other operating and
administrative costs and expenses include salaries, employee benefits, rent and other overhead expenses.

Other operating and
administrative expenses increased in 2016 primarily due to costs attributable to DreamWorks Animation, including $61 million of severance costs. Other operating and administrative expenses increased slightly in 2015 due to increased expenses
associated with our larger film slate.

Advertising, Marketing and Promotion Expenses

Advertising, marketing and promotion expenses consist primarily of expenses associated with advertising for our theatrical releases and the
marketing of our films on DVDs and in digital formats. We incur significant marketing expenses before and throughout the release of a film in movie theaters. As a result, we typically incur losses on a film prior to and during the films
exhibition in movie theaters and may not realize profits, if any, until the film generates home entertainment and content licensing revenue. The costs associated with marketing films have generally increased in recent years and may continue to
increase in the future.

Advertising, marketing and promotion expenses decreased in 2016 and increased in 2015 primarily due to higher
promotional costs associated with our larger 2015 film slate. The decrease in 2016 was partially offset due to advertising in 2016 for our domestic and international film slate. Advertising, marketing and promotion expenses also increased in 2015
due to increased advertising expenses associated with Fandango.

Theme Parks Segment Actual and Pro Forma Results of Operations

Year ended December 31 (in millions)

2016

2015

% Change

2015 to 2016

Actual

Actual

Pro FormaAdjustments

Pro FormaCombined

Actual

Pro FormaCombined

Revenue

$

4,946

$

3,339

$

1,052

$

4,391

48.2

%

12.7

%

Operating costs and expenses

2,756

1,875

564

2,439

47.0

13.0

Operating income before depreciation and amortization

$

2,190

$

1,464

$

488

$

1,952

49.6

%

12.2

%

Year ended December 31 (in millions)

2015

2014

% Change2014 to 2015

Actual

Pro FormaAdjustments

Pro FormaCombined

Actual

Pro FormaAdjustments

Pro FormaCombined

Actual

Pro FormaCombined

Revenue

$

3,339

$

1,052

$

4,391

$

2,623

$

1,085

$

3,708

27.3

%

18.4

%

Operating costs and expenses

1,875

564

2,439

1,527

634

2,161

22.8

12.8

Operating income before depreciation and amortization

$

1,464

$

488

$

1,952

$

1,096

$

451

$

1,547

33.5

%

26.2

%

Theme Parks Segment  Revenue

Our Theme Parks segment revenue is generated primarily from ticket sales and guest spending at our Universal theme parks. Guest spending includes in-park spending on food,
beverages and merchandise. Guest attendance at our theme parks and guest spending depend heavily on the general environment for travel and tourism, including consumer spending on travel and other recreational activities.

Theme Parks segment revenue increased in 2016 compared to the pro forma combined revenue in 2015
primarily due to increases in guest spending and higher guest attendance driven by the successful opening of The Wizarding World of Harry Potter attraction in Hollywood in April 2016, as well as the positive impact of foreign
currency translation due to the strengthening of the Japanese yen. The strengthening of the Japanese yen accounted for approximately one-third of the increase in revenue for 2016.

Theme Parks segment pro forma combined revenue increased in 2015 compared to the pro forma combined revenue in 2014 primarily due to higher guest
attendance and increases in guest spending at our Universal theme parks. The increase in 2015 was primarily due to the success of our attractions, including The Wizarding World of Harry Potter  Diagon Alley in Orlando, which
opened in 2014, and the Fast & Furious Supercharged studio tour and The Simpsons Springfield attraction in Hollywood, both of which opened in 2015.

Theme Parks segment operating costs and expenses increased in 2016 compared to the pro forma
combined operating costs and expenses in 2015 primarily due to additional costs associated with newer attractions, such as The Wizarding World of Harry Potter attraction in Hollywood and Skull Island: Reign of
Kong attraction in Orlando, as well as the impact of foreign currency translation due to the strengthening on the Japanese yen.

The strengthening of the Japanese yen accounted for approximately one-third of the increase in operating
income before depreciation and amortization in 2016.

NBCUniversal Headquarters, Other and Eliminations

Headquarters and Other operating costs and expenses incurred by our NBCUniversal businesses include overhead,
personnel costs and costs associated with corporate initiatives. Operating costs and expenses increased in 2016 and 2015 primarily due to higher employee-related costs.

Corporate and Other Results of Operations

Year ended December 31 (in millions)

2016

2015

2014

% Change

2015 to 2016

% Change

2014 to 2015

Revenue

$

750

$

713

$

683

5.1

%

4.4

%

Operating costs and expenses

1,624

1,528

1,446

6.2

5.7

Operating loss before depreciation and amortization

$

(874

)

$

(815

)

$

(763

)

(7.1

)%

(6.9

)%

Corporate and Other  Revenue

Other revenue primarily relates to Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania and operates arena management-related businesses.

Other revenue increased in 2016 primarily due to increases in revenue from several of our Comcast
Spectacor businesses. Other revenue increased in 2015 primarily due to an increase in revenue from food and other services associated with new contracts entered into by one of our Comcast Spectacor businesses.

Corporate and Other  Operating Costs and Expenses

Corporate and Other operating costs and expenses primarily include overhead, personnel costs, the costs of corporate initiatives and branding, and operating costs and expenses associated with Comcast Spectacor.

Corporate and Other operating costs and expenses increased in 2016 due to an increase in expenses related to corporate activities and
initiatives, including expenses associated with our anticipated wireless phone service offering. Corporate and Other operating costs and expenses increased in 2015 due to an increase in expenses related to corporate initiatives and an increase in
operating costs and expenses at Comcast Spectacor that was primarily associated with new contracts entered into by one of its businesses. In addition, Corporate and Other operating costs and expenses in 2015 and 2014 included $178 million and
$237 million, respectively, of transaction-related costs associated with the Time Warner Cable merger and related divestiture transactions.

Consolidated Other Income (Expense) Items, Net

Year ended December 31 (in millions)

2016

2015

2014

Interest expense

$

(2,942

)

$

(2,702

)

$

(2,617

)

Investment income (loss), net

213

81

296

Equity in net income (losses) of investees, net

(104

)

(325

)

97

Other income (expense), net

327

320

(215

)

Total

$

(2,506

)

$

(2,626

)

$

(2,439

)

Interest Expense

Interest expense increased in 2016 primarily due to higher levels of debt outstanding, including the Universal Studios Japan term loans. Interest expense increased in 2015 primarily due to higher levels of debt
outstanding and $47 million of additional interest expense associated with the early redemption in June 2015 of our $750 million aggregate principal amount of 5.85% senior notes due November 2015 and our $1.0 billion aggregate
principal amount of 5.90% senior notes due March 2016.

Investment Income (Loss), Net

The change in investment income (loss), net in 2016 was primarily due to an increase in income of certain investments and gains recorded on the sale
of certain investments. The change in investment income (loss), net in 2015 was primarily due to a $154 million gain related to the sale of our shares of ARRIS Group, Inc. common stock in 2014. The components of investment income (loss), net
are presented in a table in Note 7 to Comcasts consolidated financial statements.

Equity in Net Income (Losses) of Investees, Net

The changes in equity in net income (losses) of investees, net in 2016 and 2015 were primarily due to an impairment charge related
to goodwill recorded by The Weather Channel in 2015. We recorded expenses of $333 million that represented NBCUniversals proportionate share of the impairment charge. In addition, the changes in 2016 and 2015 were also due to increases in
our proportionate share of losses at Hulu, LLC, which were driven by Hulus higher programming and marketing costs. In 2016, 2015 and 2014, we recognized our proportionate share of losses at Hulu of $168 million, $106 million and
$20 million respectively. The change in 2016 was also due to our proportionate share of losses at Atairos Group, Inc., which commenced operations in 2016.

Other income (expense), net for 2016 included $225 million recognized in connection with the settlement of amounts owed to us under an agency agreement that had provided for, among other things, Verizon
Wireless sale of our cable services and $108 million related to the sale of our investment in The Weather Channels product and technology business to IBM.

Other income (expense), net for 2015 included gains of $335 million on the sales of a business and an investment, $240 million recorded on the settlement of a contingent consideration liability with
General Electric Company related to the acquisition of NBCUniversal, and $43 million related to an equity method investment. These gains were partially offset by $236 million of expenses related to fair value adjustments to a contractual
obligation.

Other income (expense), net for 2014 included a $27 million favorable settlement of a contingency related to the
AT&T Broadband transaction in 2002, which was more than offset by $208 million of expenses related to fair value adjustments to a contractual obligation and $35 million of expenses related to an indemnification receivable associated
with an adjustment to our accruals for uncertain tax positions.

Consolidated Income Tax Expense

Income tax expense reflects federal and
state income taxes and adjustments associated with uncertain tax positions. Our effective income tax rate in 2016, 2015 and 2014 was 37.0%, 37.1% and 31.1%, respectively.

In 2014, we reduced our accruals for uncertain tax positions and the related accrued interest on these tax positions and, as a result, our income tax expense decreased by $759 million. See Note 14 to
Comcasts consolidated financial statements for additional information on the changes in our accruals for uncertain tax positions and related interest on these tax positions.

We expect our 2017 annual effective tax rate to be in the range of 35% to 37%, absent changes in tax laws or significant changes in uncertain tax
positions. The expected annual effective tax rate includes the impact of the adoption of the new accounting guidance related to share-based compensation (see Note 3 to Comcasts consolidated financial statements). If significant tax legislation
is enacted in 2017 that includes a change to the federal statutory rate, this could significantly impact our deferred income taxes. For example, using information as of December 31, 2016, for each 1% change in the federal statutory rate, our
deferred income tax liability would change by $850 million, which would primarily result in a corresponding change to income tax expense.

The increases in net income attributable to
noncontrolling interests and redeemable subsidiary preferred stock in 2016 and 2015 were primarily due to NBCUniversals acquisition of the 51% interest in Universal Studios Japan.

Liquidity and Capital Resources

Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and
long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facilities; and our ability to
obtain future external financing. We anticipate that we will continue to use a substantial portion of our cash flows in repaying our debt obligations, funding our capital expenditures, investing in business opportunities and returning capital to
shareholders.

As of
December 31, 2016, amounts available under our consolidated credit facilities, net of amounts outstanding under our commercial paper programs and outstanding letters of credit, totaled $5.5 billion, which included $460 million
available under the NBCUniversal Enterprise revolving credit facility.

We, NBCUniversal and Comcast Cable Communications, LLC are
subject to the covenants and restrictions set forth in the indentures governing our public debt securities and in the credit agreements governing the Comcast revolving credit facility. The only financial covenant is in the credit facility and
pertains to leverage, which is the ratio of debt to operating income before depreciation and amortization, as defined in the credit facility. We test for compliance with this financial covenant on an ongoing basis. As of December 31, 2016, we
met this financial covenant by a significant margin. We do not expect to have to reduce debt or improve operating results in order to continue to comply with this financial covenant. In addition, the Universal Studios Japan term loans contain
certain financial covenants. As of December 31, 2016, Universal Studios Japan was in compliance with all of these covenants.

Operating
Activities

Components of Net Cash Provided by Operating Activities

Year ended December 31 (in millions)

2016

2015

2014

Operating income

$

16,859

$

15,998

$

14,904

Depreciation and amortization

9,558

8,680

8,019

Operating income before depreciation and amortization

26,417

24,678

22,923

Noncash share-based compensation

640

567

513

Changes in operating assets and liabilities

(1,782

)

(267

)

(357

)

Cash basis operating income

25,275

24,978

23,079

Payments of interest

(2,565

)

(2,443

)

(2,389

)

Payments of income taxes

(3,693

)

(3,726

)

(3,668

)

Proceeds from investments and other

456

251

190

Excess tax benefits under share-based compensation

(233

)

(282

)

(267

)

Net cash provided by operating activities

$

19,240

$

18,778

$

16,945

The variance in changes in operating assets and liabilities in 2016 compared to 2015 was primarily due to the
timing of film and television production spending and related costs, net of amortization, including certain sports programming obligations; the recognition of deferred revenue associated with the broadcast of the 2016 Rio Olympics; an increase in
certain benefit payments; and the payment of a tax receivable agreement that DreamWorks Animation entered into with one of its former stockholders prior to our acquisition. The variance in changes in operating assets and liabilities in 2015
compared to 2014 was primarily related to the timing of film and television production spending and related costs, net of amortization; the timing of payments related to our accounts payable and accrued expenses related to trade creditors; and
increases in deferred revenue associated with our Olympics broadcasts, which were partially offset by the timing of collections on our receivables.

The increases in interest payments in 2016 and 2015 were primarily due to higher levels of debt outstanding.

The decrease in income tax payments in 2016 was primarily due to taxable losses in 2016 related to the
sale of certain investments as well as taxable gains in 2015 related to the sale of a business and investments partially offset by higher taxable income from operations. The increase in income tax payments in 2015 was primarily due to higher taxable
income from operations offset by the timing of certain tax deductions. We expect income tax payments to increase in 2017 primarily due to higher taxable income from operations.

Investing Activities

Net cash used in investing activities in 2016 consisted primarily of cash
paid for capital expenditures, acquisitions, deposits, purchases of investments and intangible assets. Net cash used in investing activities in 2015 consisted primarily of cash paid for capital expenditures, acquisitions, intangible assets and
purchases of investments, which was partially offset by proceeds from the sales of businesses and investments. Net cash used in investing activities in 2014 consisted primarily of cash paid for capital expenditures and intangible assets.

Capital Expenditures

Our most
significant recurring investing activity has been capital expenditures in our Cable Communications segment, and we expect that this will continue in the future. The table below summarizes the capital expenditures we incurred in our Cable
Communications segment in 2016, 2015 and 2014.

Year ended December 31 (in millions)

2016

2015

2014

Customer premise equipment

$

3,665

$

3,698

$

3,397

Scalable infrastructure

1,827

1,539

1,375

Line extensions

1,208

886

673

Support capital

896

917

711

Total

$

7,596

$

7,040

$

6,156

Cable Communications capital expenditures increased in 2016 and 2015 primarily due to increased investment in line
extensions and increased spending in scalable infrastructure to increase network capacity, as well as continued spending on customer premise equipment related to the deployment of our X1 platform and wireless gateways.

Capital expenditures in our NBCUniversal segments increased 4.8% to $1.5 billion in 2016 and 13.5% to $1.4 billion in 2015 primarily due
to continued investment in our Universal theme parks, including Universal Studios Japan and a purchase of land in 2015.

Our capital
expenditures for 2017 are focused on continued investment in scalable infrastructure to increase network capacity; increased investment in line extensions primarily for the expansion of business services; and the continued deployment of wireless
gateways, our X1 platform, and cloud DVR technology. In addition, we expect to continue to invest in existing and new attractions at our Universal theme parks. Capital expenditures for subsequent years will depend on numerous factors, including
acquisitions, competition, changes in technology, regulatory changes, the timing and rate of deployment of new services, the capacity required for existing services, and the timing of new attractions at our theme parks. We are developing a Universal
theme park in Beijing, China, and we expect to continue to develop this park throughout 2017.

In August 2016, we acquired all of the outstanding stock of DreamWorks Animation. In November 2015, NBCUniversal acquired a 51% interest in
Universal Studios Japan.

Proceeds from Sales of Businesses and Investments

Proceeds from sales of businesses and investments in 2016 were primarily related to the sale of our investment in The Weather Channels product
and technology business to IBM. Proceeds from sales of businesses and investments in 2015 were primarily related to the sale of our investment in TV One, LLC and the sale of a business, CTI Towers Assets I, LLC. Proceeds from sales of businesses and
investments in 2014 were primarily related to the sale of our investment in Arris Group and the sale of equity securities following the settlement of certain of our prepaid forward sale agreements.

Purchases of Investments

Purchases
of investments in 2016 were primarily related to capital contributions to Atairos and NBCUniversals additional investment in BuzzFeed, Inc. Purchases of investments in 2015 were primarily related to NBCUniversals investments in Vox
Media, Inc. and BuzzFeed. Purchases of investments in 2014 were not significant.

Financing Activities

Net cash provided by financing activities in 2016 consisted primarily of proceeds from new borrowings, which were partially offset by repurchases of
our common stock, repayments of debt, dividend payments and our purchase of the remaining noncontrolling interest in Comcast Spectacor. Net cash used in financing activities in 2015 and 2014 consisted primarily of repurchases of our common stock,
repayments of debt and dividend payments, which were partially offset by proceeds from new borrowings. Proceeds from borrowings fluctuate from year to year based on the amounts paid to fund acquisitions and debt repayments.

We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases of our
outstanding public notes and debentures, depending on various factors, such as market conditions. See Note 10 to Comcasts consolidated financial statements for additional information on our financing activities, including details of our debt
repayments and borrowings.

Share Repurchases and Dividends

In 2016, we repurchased a total of 81 million shares of our Class A common stock for $5.0 billion. Effective January 1, 2017, our Board of Directors increased our share repurchase program
authorization to a total of $12 billion, which does not have an expiration date. Under the authorization, we may repurchase shares in the open market or in private transactions. We expect to repurchase $5.0 billion of our Class A
common stock during 2017, subject to market conditions.

Our Board of Directors declared quarterly dividends totaling $2.7 billion
in 2016. We paid dividends of $2.6 billion in 2016. In January 2017, our Board of Directors approved a 15% increase in our dividend to $1.26 per share on an annualized, pre-split basis, or $0.63 per share
on an annualized, post-split basis. In addition, the Board of Directors approved our first quarter dividend of $0.1575 a share on a post-split basis to be paid in April 2017. We expect to continue to pay quarterly dividends, although each dividend
is subject to approval by our Board of Directors.

Purchase obligations consist of agreements to purchase goods and services that are legally binding on us and specify all significant terms, including fixed or
minimum quantities to be purchased and price provisions. Our purchase obligations related to our Cable Communications segment and other activities include programming contracts with cable networks and local broadcast television stations; contracts
with customer premise equipment manufacturers; communications vendors and multichannel video providers for which we provide advertising sales representation; contracts to acquire handsets and other equipment; and other contracts entered into in the
normal course of business. Cable Communications programming contracts in the table above include amounts payable under fixed or minimum guaranteed commitments and do not represent the total fees that are expected to be paid under programming
contracts, which we expect to be significantly higher because these contracts are generally based on the number of subscribers receiving the programming. Our purchase obligations related to our NBCUniversal segments consist primarily of commitments
to acquire film and television programming, including U.S. broadcast rights to future Olympic Games through 2032, Sunday Night Football through the 2022-23 season, including the Super Bowl in 2018 and
2021, Thursday Night Football through the 2017-18 season, NHL games through the 2020-21 season, Spanish-language U.S. broadcast rights to FIFA World Cup games
through 2022, U.S broadcast rights to English Premier League soccer games through the 2021-22 season, certain PGA TOUR and other golf events through 2030, and certain NASCAR events through 2024, as well as
obligations under various creative talent agreements, including obligations to actors, producers and television personalities, and various other television commitments. Purchase obligations do not include contracts with immaterial future
commitments.

(c)

Other long-term liabilities reflected on the balance sheet consist primarily of subsidiary preferred shares; deferred compensation obligations; and
postretirement, pension and postemployment benefit obligations. A contractual obligation with a carrying value of $1.1 billion is not included in the table above because it is uncertain if the arrangement will be settled. The contractual
obligation involves an interest held by a third party in the revenue of certain theme parks. The arrangement provides the counterparty with the right to periodic payments associated with current period revenue and, beginning in June 2017, the option
to require NBCUniversal to purchase the interest for cash in an amount based on a contractual formula. The contractual formula is based on an average of specified historical theme park revenue at the time of exercise, which amount could be
significantly higher than the carrying value. If the option had been exercisable as of December 31, 2016, the estimated value of the contractual obligation would have been approximately $1.4 billion, based on inputs to the contractual
formula as of that date. See Note 16 to Comcasts consolidated financial statements for additional information related to this arrangement. Reserves for uncertain tax positions of $1.1 billion are not included in the table above because it
is uncertain if or when these reserves will become payable. Payments of $2.4 billion of participations and residuals are also not included in the table above because we cannot make a reliable estimate of the period in which these obligations
will be settled.

(d)

Our contractual obligations do not include our commitment to invest up to $4 billion at any one time as an investor in Atairos due to our inability to
estimate the timing of this funding. As of December 31, 2016, our remaining commitment is $2.4 billion based on the capital

calls received as of that date (see Note 7 to Comcasts consolidated financial statements). In addition, our contractual obligations do not include any future expenditures related to the
construction and development of the proposed Universal Studios theme park in Beijing, China or the Comcast Technology Center, as we do not currently have any obligation to fund either initiative.

(e)

Total contractual obligations are made up of the following components.

(in millions)

Liabilities recorded on the balance sheet

$

68,694

Commitments not recorded on the balance sheet

54,261

Total

$

122,955

Off-Balance Sheet Arrangements

As of December 31, 2016, we did not
have any material off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital
resources.

Recent Accounting Pronouncements

See Note 3 to each of Comcasts and
NBCUniversals consolidated financial statements for additional information related to recent accounting pronouncements.

Critical Accounting Judgments and Estimates

The preparation of our consolidated
financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. We base our judgments on our historical
experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making estimates about the carrying value of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe our judgments and related
estimates associated with the valuation and impairment testing of our cable franchise rights and the accounting for film and television costs are critical in the preparation of our consolidated financial statements. Management has discussed the
development and selection of these critical accounting judgments and estimates with the Audit Committee of our Board of Directors, and the Audit Committee has reviewed our disclosures relating to them, which are presented below. See Notes 9 and 6 to
Comcasts consolidated financial statements for a discussion of our accounting policies with respect to these items.

Valuation and Impairment
Testing of Cable Franchise Rights

Our largest asset, our cable franchise rights, results from agreements we have with state and
local governments that allow us to construct and operate a cable business within a specified geographic area. The value of a franchise is derived from the economic benefits we receive from the right to solicit new customers and to market additional
services, such as advanced video services and high-speed Internet and voice services, in a particular service area. The amounts we record for cable franchise rights are primarily a result of cable system acquisitions. Typically when we acquire a
cable system, the most significant asset we record is the value of the cable franchise rights. Often these cable system acquisitions include multiple franchise areas. We currently serve approximately 6,400 franchise areas in the United States.

We have concluded that our cable franchise rights have an indefinite useful life since there are no legal, regulatory, contractual,
competitive, economic or other factors which limit the period over which these rights will contribute to our cash flows. Accordingly, we do not amortize our cable franchise rights but assess the carrying value of our cable franchise rights annually,
or more frequently whenever events or changes in circumstances indicate that the carrying amount may exceed the fair value (impairment testing).

For the purpose of our impairment testing, we have grouped the recorded values of our various cable
franchise rights into our three Cable Communications divisions or units of account. We evaluate the unit of account periodically to ensure our impairment testing is performed at an appropriate level.

The annual impairment test for indefinite-lived intangibles allows for the option to first assess qualitative factors to determine whether it is
more likely than not that the fair value of an indefinite-lived intangible is less than its carrying amount. An entity may choose to perform the qualitative assessment or an entity may bypass the qualitative assessment and proceed directly to the
quantitative impairment test. If it is determined, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is, more likely than not, less than its carrying value, the quantitative impairment test is
required. When performing a quantitative assessment, we estimate the fair value of our cable franchise rights primarily based on a discounted cash flow analysis that involves significant judgment. When analyzing the fair values indicated under the
discounted cash flow models, we also consider multiples of operating income before depreciation and amortization generated by the underlying assets, current market transactions and profitability information.

In 2016, we performed a qualitative assessment of our cable franchise rights. At the time of our previous quantitative assessment in 2014, the
estimated fair values of our franchise rights exceeded the carrying value in our three Cable Communications divisions by 26%, 42% and 50%, respectively. We also considered various factors that would affect the estimated fair values of our cable
franchise rights in our qualitative assessment in 2016, including changes in our projected future cash flows associated with our Cable Communications segment; market transactions and macroeconomic conditions; weighted-average cost of capital; and an
increase in our market capitalization. Based on this assessment, we concluded that it was more likely than not that the estimated fair values of our cable franchise rights were higher than the carrying values and that the performance of a
quantitative impairment test was not required.

Since the adoption of the accounting guidance related to goodwill and intangible assets
in 2002, we have not recorded any significant impairment charges to cable franchise rights as a result of our impairment testing.

We
could record impairment charges in the future if there are changes in long-term market conditions, in expected future operating results, or in federal or state regulations that prevent us from recovering the carrying value of these cable franchise
rights. Assumptions made about increased competition and economic conditions could also impact the results of any qualitative assessment and the valuations used in future annual quantitative impairment testing and result in a reduction in the fair
values of our cable franchise rights. In addition, a future change in the unit of account could result in the recognition of an impairment charge.

Film and Television Costs

We capitalize
film and television production costs, including direct costs, production overhead, print costs, development costs and interest. We amortize capitalized film and television production costs, including acquired libraries, and accrue costs associated
with participation and residual payments to programming and production expenses. We generally record the amortization and the accrued costs using the individual film forecast computation method, which amortizes the costs using the ratio of the
current periods revenue to estimated total remaining revenue from all sources (ultimate revenue). Estimates of ultimate revenue have a significant impact on how quickly capitalized costs are amortized and, therefore, are updated
regularly.

Our estimates of ultimate revenue for films generally include revenue from all sources that are expected to be earned within
10 years from the date of a films initial release. These estimates are based on the historical performance of similar content, as well as factors unique to the content itself. The most sensitive factor affecting our estimate of ultimate
revenue for a film intended for theatrical release is the films theatrical performance, as subsequent revenue from the licensing and sale of a film has historically exhibited a high correlation to its theatrical performance. Upon a films
release, our estimates of revenue from succeeding

markets, including from content licensing across multiple platforms and home entertainment sales, are revised based on historical relationships and an analysis of current market trends.

With respect to television series or other owned television programming, the most sensitive factor affecting our estimate of ultimate
revenue is whether the series can be successfully licensed beyond its initial license. Initial estimates of ultimate revenue are limited to the amount of revenue contracted for each episode under the initial license. Once it is determined that a
television series or other owned television programming can be licensed for subsequent platforms, revenue estimates for these platforms, such as U.S. and international syndication, home entertainment, and other distribution platforms, are included
in ultimate revenue. Revenue estimates for produced episodes include revenue expected to be earned within 10 years of delivery of the initial episode or, if still in production, 5 years from the delivery of the most recent episode, if later.

We capitalize the costs of programming content that we license but do not own, including rights to multiyear, live-event sports
programming, at the earlier of when payments are made for the programming or when the license period begins and the content is made available for use. We amortize capitalized programming costs as the associated programs are broadcast. We generally
amortize multiyear, live-event sports programming rights using the ratio of the current period revenue to the estimated ultimate revenue or under the terms of the contract.

Capitalized film and television costs, as well as stage play production costs, are subject to impairment testing when certain triggering events are identified. If the fair value of a production were to fall below
its unamortized cost, we would record an adjustment for the amount by which the unamortized capitalized costs exceed the productions fair value. The fair value assessment is generally based on estimated future discounted cash flows, which are
supported by our internal forecasts. Adjustments to capitalized film and stage play production costs of $14 million, $42 million and $26 million were recorded in 2016, 2015 and 2014, respectively.

Item 7A: Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk Management

We maintain a mix of fixed-rate and
variable-rate debt and we are exposed to the market risk of adverse changes in interest rates. In order to manage the cost and volatility relating to the interest cost of our outstanding debt, we enter into various interest rate risk management
derivative transactions in accordance with our policies.

We monitor our exposure to the risk of adverse changes in interest rates
through the use of techniques that include market value and sensitivity analyses. We do not engage in any speculative or leveraged derivative transactions.

Our interest rate derivative financial instruments, which may include swaps, rate locks, caps and collars, represent an integral part of our interest rate risk management program. Comcasts interest rate
derivative financial instruments reduced the portion of Comcasts total consolidated debt at fixed rates as of December 31, 2016 to 85.3% from 88.9%. As of December 31, 2016, NBCUniversal had no outstanding interest rate derivative
financial instruments.

In 2016, 2015 and 2014, the effect of our interest rate derivative financial instruments was to decrease
Comcasts consolidated interest expense by $36 million, $62 million and $66 million, respectively. The effect

of NBCUniversals interest rate derivative financial instruments was not material to NBCUniversals consolidated financial statements for all periods presented. Interest rate derivative
financial instruments may have a significant effect on Comcasts interest expense in the future.

The table below summarizes as of
December 31, 2016 by contractual year of maturity the principal cash flows, notional amounts, fair values and contract terms of financial instruments subject to interest rate risk maintained by us.

(in millions)

2017

2018

2019

2020

2021

Thereafter

Total

Estimated

Fair Value as of

December 31,

2016

Debt

Fixed rate

$

2,589

$

3,346

$

2,234

$

3,429

$

2,043

$

40,959

$

54,600

$

59,561

Average interest rate

6.9

%

4.5

%

3.2

%

5.1

%

4.4

%

4.8

%

4.8

%

Variable rate

$

2,894

$

857

$

232

$

2,788

$



$



$

6,771

$

6,777

Average interest rate

1.8

%

2.5

%

2.4

%

3.0

%



%



%

2.4

%

Interest Rate Instruments

Fixed to variable swaps

$

400

$

1,600

$

200

$



$



$



$

2,200

$

34

Average pay rate

6.0

%

4.5

%

5.1

%



%



%



%

4.5

%

Average receive rate

6.3

%

5.8

%

5.7

%



%



%



%

5.9

%

We use the notional amount of each interest rate derivative financial instrument to calculate the interest to be
paid or received. The notional amounts do not represent our exposure to credit loss. The estimated fair value approximates the amount of payments to be made or proceeds to be received to settle the outstanding contracts, including accrued interest.
We estimate interest rates on variable rate debt and swaps using the relevant average implied forward rates through the year of maturity based on the yield curve in effect on December 31, 2016, plus the applicable borrowing margin on
December 31, 2016.

See Note 2 to each of Comcasts and NBCUniversals consolidated financial statements for additional
information on our accounting policies for derivative financial instruments.

Foreign Exchange Risk Management

NBCUniversal has significant operations in
a number of countries outside the United States, and certain of NBCUniversals operations are conducted in foreign currencies. The value of these currencies fluctuates relative to the U.S. dollar. These changes could adversely affect the U.S.
dollar equivalent value of our non-U.S. dollar revenue and operating costs and expenses and reduce international demand for our content, all of which could negatively affect our business, financial condition
and results of operations in a given period or in specific territories.

As part of our overall strategy to manage the level of exposure
to the risk of foreign exchange rate fluctuations, NBCUniversal enters into derivative financial instruments related to a significant portion of its foreign currency exposure, which is a result of transactions denominated in other than the
functional currency. NBCUniversal enters into foreign currency forward contracts that change in value as currency exchange rates fluctuate to protect the U.S. dollar equivalent value of its non-U.S. dollar
assets, liabilities, commitments, and forecasted foreign currency revenue and expenses. In accordance with our policy, NBCUniversal hedges forecasted foreign currency transactions for periods generally not to exceed 18 months. In certain
circumstances, NBCUniversal enters into foreign exchange contracts with initial maturities in excess of 18 months. As of December 31, 2016 and 2015, NBCUniversal had foreign exchange contracts with a total notional value of $1.5 billion
and $998 million, respectively. As of December 31, 2016 and 2015, the aggregate estimated fair value of these foreign exchange contracts was not material.

We have analyzed our foreign currency exposure related to NBCUniversals operations as of
December 31, 2016, including our hedging contracts, to identify assets and liabilities denominated in a currency other than their functional currency. For those assets and liabilities, we then evaluated the effect of a 10% shift in currency
exchange rates between the functional currency and the U.S. dollar. Our analysis of such a shift in exchange rates indicated that there would be an immaterial effect on our 2016 income. In addition, the impact of fluctuations in currencies relative
to the U.S. dollar for our non-U.S. dollar functional currency operations did not have a material impact on our financial condition or results of operations in 2016.

Comcast is also exposed to the market risks associated with fluctuations in currency exchange rates as they relate to its foreign currency
denominated debt obligations. We use cross-currency swaps for foreign currency denominated debt obligations when those obligations are denominated in a currency other than the functional currency. Cross-currency swaps effectively convert fixed-rate
foreign currency denominated debt to fixed-rate U.S. dollar denominated debt in order to hedge the risk that the cash flows related to annual interest payments and the payment of principal at maturity may be adversely affected by fluctuations in
currency exchange rates. The gains and losses on the cross-currency swaps offset changes in the U.S. dollar equivalent value of the related exposures. As of December 31, 2016 and 2015, the fair value of our cross-currency swaps on our
£625 million principal amount of 5.50% senior notes due 2029 was a liability of $189 million and $71 million, respectively.

Counterparty Credit Risk Management

Comcast and NBCUniversal manage the credit risks associated with our derivative financial instruments through diversification and the evaluation and
monitoring of the creditworthiness of counterparties. Although we may be exposed to losses in the event of nonperformance by counterparties, we do not expect such losses, if any, to be significant. Comcast has agreements with certain counterparties
that include collateral provisions. These provisions require a party with an aggregate unrealized loss position in excess of certain thresholds to post cash collateral for the amount in excess of the threshold. The threshold levels in our collateral
agreements are based on our and the counterpartys credit ratings. As of December 31, 2016 and 2015, Comcast was not required to post collateral under the terms of these agreements. As of December 31, 2016 and 2015, we did not hold
any collateral under the terms of these agreements.